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CSC Steel 2Q net profit up 21% on-year

TheEdge Mon, Aug 26, 2019 01:50pm - 11 months ago

KUALA LUMPUR (Aug 26): CSC Steel Holdings Bhd reported today a 21% rise in second quarter net profit at RM12.6 million from RM10.4 million a year earlier on higher cold-rolled steel (CRC) sales volume amid lower marketing and administrative expenses.

In a statement to Bursa Malaysia today, CSC said revenue rose to RM343.75 million in the second quarter ended June 30, 2019 (2QFY19) from RM342.53 million.

"The additional revenue generated from higher CRC sales volume was offset by the decrease in sales revenue of GI (galvanised steel) and PPGI (pre-painted galvanised steel) products as a result of lower sales volume and selling prices in all our key products.

"However, the group recorded a higher profit before tax of RM16.1 million for the current quarter compared with RM13.5 million in the corresponding quarter. The increase in profit was mainly due to the lower marketing and administrative expenses as well as marginal increase in margin for coated steel products," CSC said.

For 1HFY19, CSC said net profit fell to RM17.21 million from RM20.99 million a year earlier while revenue was lower at RM674.95 million versus RM690.25 million.

Barring unforeseen circumstances, the group said it is cautiously optimistic of achieving positive results in 2019. 

"Going forward, apart from the rise in iron ore price, there are various potential influencing factors that may affect Malaysia's steel industry such as Malaysia’s new steel policy and government’s revival of some mega infrastructure projects. 

"However, the prospect of the construction section in the second half year of 2019 is expected to remain sluggish as certain construction contracts will only be released in early 2020," CSC said.

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