Vulcan reports record $124m full-year profit

Vulcan managing director and chief executive Rhys Jones said the result exceeded its forecast net profit of $57.1 million.

"The strong FY22 performance has enabled the company to invest in our staff, working capital and processing capacity and support the debt-funding for our acquisition of Ullrich to position the company for long term growth."

The acquisition of Ullrich Aluminium was effective from 1 August, which was outside the 2022 financial year.

Looking ahead, Vulcan said rising interest rates and ongoing Covid-19 disruptions in some major markets were likely to affect demand for steel and metal products.

It also said global metal prices and freight rates had declined from their recent peaks and were likely to remain volatile.

"For Australia and New Zealand, Vulcan expects a more challenging industry environment in FY23 due to the impact of higher interest rates. New Zealand business confidence remains weak while in Australia economic activity appears more resilient for now," the company said in a statement.

The company forecast operating earnings of between $215m to $235m in 2023, reflecting the industry headwinds.

Forecast net profit for 2023 was expected to be in the range of $93m to $107m.