Friday, November 4, 2011

Malaysia Smelting Corp 3Q net profit RM41.81m, but outlook cautious

KUALA LUMPUR (Nov 4): MALAYSIA SMELTING CORPORATION [] Bhd posted net profit of RM41.81 million in the third quarter ended Sept 30, 2011 compared with net loss of RM37.05 million a year ago where there was impairment provision for goodwill of RM73.63 million.

MSC said on Friday that revenue increased by 25.9% to RM907.04 million from RM719.96 million.'' Earnings per share were 41.80 sen compared with loss per share of 49.40 sen.

It posted a 121.7% increase in pre-tax profit of RM51.91 million before unusual items from RM23.41 million. This was due to higher profits from its tin mining and smelting operations in Malaysia and Indonesia mainly due to an improved operating performance and higher average tine prices.

There was an impairment provision for goodwill arising from acquisition of subsidiaries totaling RM73.63 million.

'However, for the current year is expected the operating environment to be difficult and challenging due to the weaker demand for commodities due to prevailing global economic slowdown and on-going uncertainty in the global finance markets,' it said. However it expected to remain profitable in the fourth quarter.

For the nine-month period, it recorded net profit of RM106.39 million versus net loss of RM58.20 million in the previous corresponding period. Revenue increased by 25.2% to RM2.497 billion from RM1.994 billion.

It said for the nine-month period in 2010, the impairment provision for goodwill arising from acquisition of subsidiaries was RM121.63 million.

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