- Vulcan Steel (VSL) Raises Fiscal 2022 Earnings Forecast Following Stronger Than Expected Trading
- For the nine months through March 31, the company reports unaudited revenue of $645.3 million, a 34% year-over-year increase.
- Vulcan says it also saw strong transactions between February and the third week of April, and as such increased pro forma EBITDA guidance by 20% to between NZ$236 million and $242 million.
- Pro forma net profit after tax increased by 25% to between NZ$136m and NZ$140m
- VSL shares last traded at $9.14
Vulcan Steel (VSL) raised its profit forecast for fiscal 2022 following stronger than expected trading.
In the nine months to March 31, the company generated NZ$700 million (A$645.3 million) in unaudited revenue, representing a 34% year-on-year jump. other.
In terms of revenue from its steel segment, Vulcan saw a 42% year-over-year increase for the period on 6% higher sales volume.
For its metals segment, sales volume increased 2% and revenue 21% year-on-year.
On the back of “stronger than expected” trading between February and the third week of April, Vulcan revised its previous earnings forecast for the current fiscal year.
Pro forma profit before interest, tax, depreciation and amortization post-IFRS 16 was initially expected to be between NZ$194 million and NZ$204 million. The guidance range has now been increased by 20% to between 236 and 242 million NZ$.
The company also increased its pro forma after-tax net profit by 25% to between NZ$136 million and NZ$140 million.
“Despite the disruption caused by COVID-19 and severe weather in Australia, Vulcan’s
operations and financial performance have remained strong over the past three months,” said Managing Director and CEO Rhys Jones.
“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 level of service and the availability of our products to meet our customers’ needs.”
Vulcan plans to release its full year results on August 24.
VSL shares last traded at $9.14.