Posted on 03 Sep 2014
Integrated steel manufacturer Malaysia Steel Works (KL) Bhd's (Masteel) earnings slipped 0.3% to RM10.10mil in the second quarter ended June 30, 2014 from RM10.13mil mainly due to a lower margin on a higher sales volume.
It said on Thursday its revenue rose 5.2% to RM359.98mil from RM342.26mil a year ago mainly due to higher sales volume. Earnings per share were 4.56 sen compared with 4.66 sen.
Masteel said group's revenue for Q2, 2014 increased to RM22.31mil to RM359.99mil from the first quarter ended March 31, 2014 mainly due to higher selling price and sales volume.
Its profit before tax rose to RM10.79mil from RM7.67mil in Q1, 2014 mainly due to higher margin from the higher sales volume in Q2, 2014.
In the first half ended June 30, 2014, its earnings jumped 27.1% to RM17.38mil from RM13.67mil. Revenue rose at a slower pace of 3.8% to RM697.66mil from RM672.30mil.
Masteel said it was making good progress in upgrading its production plant. The group is upgrading its billet plant in Bukit Raja to produce 700,000 tonnes of steel billets from 650,000 tonnes previously, which is on track for completion in end-2014.
"It is also in the midst of constructing a new 200,000 tonne rolling mill in Bukit Raja, scheduled for completion in 2015.
Its managing director and CEO Datuk Seri Tai Hean Leng said: "The production facility upgrades, upon completion, effectively create for the group its first integrated manufacturing facility in Bukit Raja.
"This not only lays the foundation for Masteel to tap into future growth in steel bar demand, but also improves our bottom line performance through cost advantages and improved manufacturing efficiency," he added.
