- Vulcan Steel (VSL) increases its earnings forecasts for the 2022 financial year following stronger than expected trading
- For the nine months to March 31, the company reports $645.3 million in unaudited revenue, a 34 per cent jump year on year
- Vulcan says it has also seen strong trading between February and the third week of April, and as such has increased pro forma EBITDA guidance by 20 per cent to between NZ$236 million and $242 million
- Pro forma net profit after tax guidance has been increased by 25 per cent to between NZ$136 million and $140 million
- VSL shares last traded at $9.14
Vulcan Steel (VSL) has increased its earnings forecasts for the 2022 financial year following stronger than expected trading.
For the nine months to March 31, the company generated NZ$700 million (A$645.3 million) in unaudited revenue, which marks a 34 per cent jump year on year.
In terms of revenue from its steel segment, Vulcan saw a 42 per cent lift year on year for the period on six per cent higher sales volume.
For its metals segment, sales volume grew two per cent and revenue 21 per cent year on year.
On the back of the “stronger than expected” trading between February and the third week of April, Vulcan revised its previous earnings forecasts for the current financial year.
Pro forma earnings before interest, tax, depreciation and amortisation post-IFRS 16 was originally forecast at between NZ$194 million and $204 million. The guidance range has now been increased by 20 per cent to between NZ$236 million and $242 million.
The company also increased its pro forma net profit after tax guidance range by 25 per cent to between NZ$136 million and $140 million.
“Despite disruptions caused by COVID-19 and adverse weather in Australia, Vulcan’s
operations and financial performance have remained strong in the past three months,” Managing Director and CEO Rhys Jones said.
“The geopolitical uncertainty in Europe has added more volatility to global supply chains and product prices for many industries including the steel sector.
“We continue to focus on maintaining our high service level and product availability to support our customer needs.”
Vulcan expects to release its full year financial year results on August 24.
VSL shares last traded at $9.14.