Hiap Teck’s third quarter profit down

> Drops 95.8% on lower earnings from subsidiaries, higher share of loss from joint venture

PETALING JAYA: Steel maker Hiap Teck Venture Bhd saw its net profit slump 95.8% to RM1.34 million for the third quarter ended April 30 compared with RM31.94 million in the previous corresponding period, due to lower earnings from its operating subsidiaries and a higher share of loss for its joint venture.

Its revenue declined 18.7% to RM241.57 million from RM297.13 million.

Hiap Teck’s nine-month profit, however, rose 37.3% to RM47.92 million from RM34.89 million on the back of a 5.1% drop in revenue to RM802.54 million from RM845.38 million.

Looking ahead, the group expects steel demand in Malaysia to be challenging in 2018, with steel demand likely to be weaker in the last quarter of its financial year due to the festive season and the review of the mega infrastructure projects by the new government.

Nonetheless, Hiap Teck opined this scenario will be temporary as it strongly believes that the new government will put in place positive measures to drive the economic growth of the country in the coming months.

“The group is committed to continuous improvement in all aspects to strive for a positive performance for the financial year and stay forefront in the steel industry in Malaysia.”

On Bursa Malaysia yesterday, Hiap Teck was unchanged at 36 sen with 4.41 million shares changing hands.