Southern Steel turns around in 3Q with RM18m profit

Business & Markets 2013
Written by the edgemalaysia.com
Monday, 29 April 2013 20:05
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Monday, 29 April 2013

KUALA LUMPUR (APRIL 29): SOUTHERN STEEL BHD [] posted a net
profit of RM18.26 million for its third quarter to end-Feb 2013,
compared to a loss of RM22.78 million in corresponding quarter a year
ago.
However, revenue was lower at RM724.99 million, compared with
RM869.26 million.
The company has proposed a dividend of 5 sen.
Reviewing its results, Southern Steel said lower revenue was due to
lower selling price and sales volume.
But better margin from lower material cost enabled the group to
turnaround from a loss.
On outlook, Southern Steel said the operating environment for the steel
industry remains “highly challenging” with severe dumping by the
Chinese steel mills.
But recently, after the Malaysian government implemented measures to
control the rampant imports, this has enabled some recovery of prices
and margins in the domestic market.
“The board therefore believes that with the improvement in the market
place, the fourth quarter performance will continue to improve,” said the
company in its filing to Bursa Malysia.