Today’s business news: What you need to know

Steel Framing of a New Commercial Building.

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Latest – Steel and Tube has lowered its full year earnings forecast, amid pressure on margins, and a restatement of last year’s accounts.

The building products company expects full year operating earnings of between $15.5-17.5 million.

That compares with a revised previous forecast of $21 million dollars and an original forecast of $25m.

Steel and Tube says it’s had to restate its previous guidance because of a change in the way it accounted for certain products.

It says it’s keeping a lid on costs as it contends with a shrinking market and pressure on prices.

Growth in the service sector continues to slow down.

The BNZ-Business New Zealand Performance of Services Index dropped half a point to 51.8 last month, which is below the long-term average and the third consecutive monthly drop.

It’s the slowest rate of expansion in nearly seven years.

The survey shows a significant drop in the number of positive comments, particularly regarding the prolonged school holiday-ANZAC-Easter break, which disrupted the usual level of business activity, while others are concerned about the general economic downturn and slowing demand.

Scales Corporation reveals its full year forecast

The horticulture business is forecasting full year underlying profit of between $32-$37 million.

It expects an increase in operating earnings.

The company has sold several businesses over the past year for a total of $186m.

It says it will give more details at its annual meeting in three weeks.

Published at Mon, 20 May 2019 04:09:34 +0000
Source: Today’s business news: What you need to know