KUALA LUMPUR: Southern Steel Bhd
returned to the black in the first quarter (Q1) ended Sept 30, 2016, after two years of consecutive quarterly losses.
Announcing its unaudited results to Bursa Malaysia, it said it recorded earnings of RM19.3mil in Q1 compared with a loss of RM51.9mil a year earlier.
Southern Steel attributed the change in fortune to “higher selling price and lower cost.”
Revenue, meanwhile, slipped 1% to RM585.75mil.
On its prospects, Southern Steel noted that the Government announced provisional safeguard duties of 13.9% and 13.4% for steel wire rod and rebar respectively effective Sept 26.
“However, (the) local market remains competitive as it will take a few months before the existing market inventory of cheap imports can be exhausted. With rising material costs and softer market demand, the board expects the market to remain uncertain and volatile for the financial year emding June 30, 2017,” it said.
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