CSC Steel 3Q profit plunges 53% to RM2.9m

Business & Markets 2013
Written by Jeffrey Tan of theedgemalaysia.com
Friday, 08 November 2013 19:40
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KUALA LUMPUR (Nov 8): CSC Steel Holdings Bhd’s net profit plunged 53%
year-on-year to RM2.9 million in the third quarter ended Sept 30, 2013, from
RM6.2 million a year ago.
Its revenue also fell 16% y-o-y to RM257 million from RM307 million.
In a filing to the stock exchange, the steel manufacturer blamed higher
distribution expenses as a result of greater export volume and the weakened
ringgit caused by a downgrade by Fitch Rating on Malaysia.
CSC Steel said the revenue decline was primarily due to the significant
reduction in sales volume of steel products and significant drop in their selling
prices.
However, its nine-month net profit was higher at RM28 million, compared with
RM22 million, while revenue was RM859 million versus RM857 million in the
previous corresponding period.
“In terms of 4Q prospects, it will be similar to the previous one if there is no
significant change in the steel market in the near future,” said CSC Steel.
“The group is faced with thin margin in this competitive market, but we have
taken steps aimed at reducing production cost and increasing sales volume and
profit.”