KUALA LUMPUR: Integrated steel manufacturer Malaysia Steel Works (KL) Bhd (Masteel) turned around to profitability in the financial year ended Dec 31, 2010 on the back of a record RM1 billion in revenue.
Masteel said on Thursday, Feb 24 it recorded net profit of RM28.18 million compared to net loss of RM8.09 million in FY09, while revenue rose 46.2% to RM1 billion from RM687.26 million in FY09.
Masteeel attributed the strong year-on-year growth to the increased demand for its products as well as higher prices.
Managing director and chief executive officer Datuk Seri Tai Hean Leng said the achievement of the RM1 billion sales mark was not merely a milestone in the group's corporate history, but a reflection of the scale of its operations since its establishment 40 years ago.
'Given that our electric arc furnace uses scrap metal as the primary feed stock, our steel manufacturing operations are shielded from the impact of rising iron ore and coking coal prices.
'Coupled with the anticipated higher demand for steel bars and billets resulting from the expected recovery in global markets, we are optimistic of sustaining our growth momentum moving forward,' he said.
For the fourth quarter ended Dec 31, 2010 Masteel net profit declined 15% to RM8.99 million from RM10.58 million a year earlier, mainly due to the one off provision for a legal suit of RM4.34 million.
Revenue for the quarter increased to RM291.98 million from RM191.68 million a year earlier, driven mainly by higher volume and prices. Earnings per share were 4.35 sen, while net assets per share was RM2.27.
Masteel is involved in the manufacturing of high-tensile deformed steel bars, mild steel round bars and steel billets.
It exports 30% to 40% of its products and has 68 domestic dealers and several international trading houses as partners in Australia, New Zealand, Indonesia, Singapore, Thailand, Vietnam and The Philippines.
Commenting on its outlook, Tai said the broad global recovery was expected to positively support the growth of the demand of steel bars and billets, inflationary impact on the prices of the company's raw material is expected to be manageable as the primary feed stock used is scrap.
Barring any unforeseen circumstances, the company envisaged its earnings to be enhanced for the financial year ahead, he said.
Masteel said on Thursday, Feb 24 it recorded net profit of RM28.18 million compared to net loss of RM8.09 million in FY09, while revenue rose 46.2% to RM1 billion from RM687.26 million in FY09.
Masteeel attributed the strong year-on-year growth to the increased demand for its products as well as higher prices.
Managing director and chief executive officer Datuk Seri Tai Hean Leng said the achievement of the RM1 billion sales mark was not merely a milestone in the group's corporate history, but a reflection of the scale of its operations since its establishment 40 years ago.
'Given that our electric arc furnace uses scrap metal as the primary feed stock, our steel manufacturing operations are shielded from the impact of rising iron ore and coking coal prices.
'Coupled with the anticipated higher demand for steel bars and billets resulting from the expected recovery in global markets, we are optimistic of sustaining our growth momentum moving forward,' he said.
For the fourth quarter ended Dec 31, 2010 Masteel net profit declined 15% to RM8.99 million from RM10.58 million a year earlier, mainly due to the one off provision for a legal suit of RM4.34 million.
Revenue for the quarter increased to RM291.98 million from RM191.68 million a year earlier, driven mainly by higher volume and prices. Earnings per share were 4.35 sen, while net assets per share was RM2.27.
Masteel is involved in the manufacturing of high-tensile deformed steel bars, mild steel round bars and steel billets.
It exports 30% to 40% of its products and has 68 domestic dealers and several international trading houses as partners in Australia, New Zealand, Indonesia, Singapore, Thailand, Vietnam and The Philippines.
Commenting on its outlook, Tai said the broad global recovery was expected to positively support the growth of the demand of steel bars and billets, inflationary impact on the prices of the company's raw material is expected to be manageable as the primary feed stock used is scrap.
Barring any unforeseen circumstances, the company envisaged its earnings to be enhanced for the financial year ahead, he said.
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