Steelnet buoyed by exports

Steelnet, which comprises BMA Fasteners, Hastt Zimbabwe and Tube and Pipe Industries, had an excellent year in 2003 with each of the three units posting growths of over 600 percent.

Overall growth was 638 percent with sales improving from $7.9 billion to $58.1 billion.

Operating profit shot up from $3.3 billion to nearly $30 billion with net profit at $13.8 billion, up from $2.1 billion.

Sales for BMA Fasteners grew by 648 percent to $9.7 billion.

Exports to Zambia were slowed down by a punitive VAT but this improved in the second half.

The division made significant inroads into South Africa and Malawi.

Sales for Hastt improved by 637 percent despite subdued demand from local commercial agriculture.

There was a 68 percent growth in Haka animal drawn implement sales and significant regional export sales which saw the division earn $7.3 billion in sales.

Tube and Pipe Industries was the biggest contributor to revenue, bringing in $41 billion, a 633 percent increase from the previous year.

Exports accounted for 40 percent of all pipes sold.

The unit says while exports grew in each of the regional markets, the most significant development was the growth in mining related pipes in South Africa.

The company says though the blend auction rate had depressed revenue from exports, the productive sector finance facility had helped it convert borrowings reducing its finance costs.

It paid $9.1 billion in interest charges last year, a significant increase from $350 million the previous year.

(68 VIEWS)