Posted on 06 Mar 2012
Malaysia Steel Works (KL) Bhd slipped into the red in its fourth quarter (Q4) ended Dec 31, 2011 with its net loss amounting to RM13.33mil, compared to a net profit of RM8.99mil recorded in the previous corresponding period.
Revenue climbed to RM336.6mil from RM291.9mil previously.
In filings to Bursa Malaysia, the company had attributed its weaker performance to lower margin and one-off impairment of investment of RM4mil in the current quarter.
For the financial year ended Dec 31, 2011, the company achieved a 12.6% drop in net profit of RM24.5mil compared to RM28.09mil recorded previously, while revenue rose to RM1.25bil from RM1bil.
The company said the prices of steel products had declined and the margin of the company’s steel products had also been affected.
“However, as inventory levels of major steel mills are expected to be low, the commencement of restocking activities by customers in the months ahead is anticipated to lift steel prices,” it said.
