Posted on 04 Aug 2010
Ann Joo Resources Bhd’s net profit ballooned to RM70.9mil for its second quarter ended June 30from RM2.2mil in the previous corresponding period due to continuous improvement in productivity coupled with elevated export tonnage.
It told Bursa Malaysia yesterday that revenue for the quarter increased 40% to RM595.4mil against RM424.3mil a year ago.
It said the higher revenue was mainly attributable to higher selling price and sales tonnage boosted by a recovery in steel consumption in both the international and domestic markets.
Earnings per share for the quarter was 14.11 sen versus 0.44 sen a year ago. Ann Joo declared a dividend of 6 sen per share.
On the prospects, it said the international steel industry was forecast to grow with intermittent corrections throughout the year.
Ann Joo said steel demand was expected to return by the fourth quarter, mainly driven by robust economic growth in emerging markets and post-summer re-stocking rally.
Domestically, steel demand is expected to recover with the resurgence of construction activities and infrastructure development coupled with the start of the 10th Malaysia Plan.
