Posted on 28 Aug 2017
CSC Steel Holdings Bhd’s earnings fell nearly 51% to RM14.44mil in the second quarter ended June 30, 2017 as it was affected by higher raw material costs and lower production volume.
The steel producer cautioned that prices of steel products have been trending lower since June 2017 and this may impact its profitability in the third quarter as a result of sales margin squeeze.
In a filing with Bursa Malaysia, it said that earnings fell from RM29.32mil a year ago. Its revenue however, increased 18.8% to RM320.54mil from RM269.71mil. Earnings per share were 3.91 sen compared with 7.95 sen.
Commenting on the financial performance, CSC Steel said the higher revenue was mainly due to significant increase in selling prices of its steel products albeit at significantly lower sale volume.
