Lion Industries post RM27.6m 1Q net profit

KUALA LUMPUR: Lion Industries Bhd posted a net profit of RM27.6 million for the first quarter ended Sept 30 (1QFY12), turning the corner from a net loss of RM18.8 million for the corresponding period a year earlier.

The group’s revenue rose 42.4% to RM1.33 billion compared with RM936 million a year earlier. For the three months in review, the company posted basic earnings per share of 3.85 sen versus a basic loss per share of 2.62 sen a year ago.

In its filing with Bursa Malaysia, Lion Industries said the higher revenue was due to higher sales tonnage and selling prices of its steel products.

After accounting for higher profits from associate companies and jointly-controlled entities of RM25.3 million, Lion Industries posted a profit before tax of RM37 million against a loss before tax of RM36.4 million a year earlier.

On its outlook, Lion Industries said the group’s operating environment would remain challenging in view of uncertainties surrounding the global economy.

“Demand for steel products is expected to be soft while raw material prices remain volatile. On the domestic front, demand for steel products is expected to recover, driven primarily by the initiatives implemented under the Economic Transformation Programme (ETP),” it said.

It added that its steel business would achieve a satisfactory set of results in the next quarter due to ETP initiatives.

Lion Industries rose two sen to close at RM1.36 yesterday with 452,100 shares done.