Published: Wednesday August 29, 2012 MYT 2:05:00 PM
Higher selling prices boost Masteel Q2 earnings by 22.6% to RM19m
By Joseph Chin
KUALA LUMPUR: Malaysia Steel Works (KL) Bhd's earnings increased by 22.6% to RM18.99mil from RM15.48mil a year ago, boosted by higher selling prices and improved margins.
It said on Wednesday its revenue increased by 1.8% to RM344.12mil from Rm337.98mil. Earnings per share were 9.02 sen compared with 7.35 sen.
Masteel managing director and CEO Datuk Seri Tai Hean Leng said the company had in the second quarter, benefited from increasing steel product prices and the increased activity in the construction industry.
These factors had resulted in strong demand for its products, he said.
"Going forward, we will continue to ramp up our marketing efforts to boost demand for our products and take opportunities from within the domestic and regional markets," said Tai.
Masteel operates a 550,000 tonne per annum meltshop in Bukit Raja and a 350,000 tonne rolling mill in Petaling Jaya.
It is setting up a second rolling mill in Bukit Raja, which - once fully operational - will have an annual production capacity of 180,000 tonnes.
The company said that even without the new second rolling mill up and running, the group was able to post an 11% increase in revenue in the first half ended June 30 of RM684.04mil from RM616.40mil in the previous corresponding period.
However, earnings however declined 34.8% to RM14.11mil from RM21.67mil a year ago.