Thursday, November 4, 2010

Malaysia Smelting posts RM37m losses in 3Q on impairments

KUALA LUMPUR: MALAYSIA SMELTING CORPORATION [] Bhd (MSC) posted losses of RM37.05 million in the third quarter ended Sept 30 compared with net profit of RM8.77 million a year ago after it made further impairment provisions totaling RM73.63 million.

MSC said on Thursday, Nov 4 that revenue rose 17.9% to RM719.96 million from RM610.66 million a year ago. At the pre-tax level, it posted losses of RM50.22 million compared with pre-tax profit of RM16.68 million. Loss per share was 49.4 sen compared with earnings per share of 11.7 sen.

During the quarter, the group undertook a valuation of its investment in KM Resources Inc which resulted in a surplus of RM65 million. This surplus was recognised as prior year's retained earnings.

'In line with the group's on-going review of its non-tin assets, the group made further provisions totaling RM73.63 million,' it said.

For the nine-months ended Sept 30, its revenue rose 44.5% to RM1.99 billion from RM1.38 billion, contributed by higher business volume and higher tin prices.

MSC recorded higher pre-tax profit before unusual items of RM67.55 million compared with RM18.19 million in the previous corresponding period. Net loss was RM58.20 million versus net profit of RM10.17 million.


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