Trading halt on Steel & Tube shares

LOWER HUTT: Steel & Tube Holdings shares have been stopped from trading pending a board review of the steel products maker’s financial performance, which the company expects will change earnings guidance.

The stock last traded at $1.98, valuing the company at $179.4 million, and has dropped 5.7% so far this year.

The Lower Huttbased company had previously forecast annual earnings excluding nontrading costs would be in line with the $31.7 million reported in 2017.

‘‘The halt is to allow for STU’s board to complete a review of the company’s financial performance year to date and consider certain other factors that are likely to impact on earnings guidance previously provided to the market,’’ the company said in a statement.

The company expected to make an announcement about revised earnings guidance for the 2018 financial year before the NZX opened today, the statement said.

In February, Steel & Tube

reported a 64% slide in firsthalf profit to $3.8 million after writing down old inventory by $5.5 million and recognising $2.6 million of restructuring costs.

At the time, it signalled its change programme could lead to further earnings downgrades as the company goes through ‘‘significant change’’. — BusinessDesk