The Star Malaysia - StarBiz
Masteel posts net loss on lower selling prices
KUALA LUMPUR: Malaysia Steel Works (KL) Bhd (Masteel) posted a net loss of RM4.88mil for the firstquarter ended March 31, from a net profit of RM6.19mil a year earlier, despite revenue increasing to RM339.92mil from RM278.41mil.
ThecompanytoldBursaMalaysia that the loss was mainly due to lower selling prices while the increase in revenue was mainly attributed to higher sales volume.
“The group recorded a lower loss before tax of RM4.88mil compared withalossbeforetaxofRM14.54mil in the immediate preceding quarter mainly due to better margin in the current quarter,” it said.
Moving forward, Masteel said, it expected to broaden its profit margin in the ensuing quarters due to improved efficiency of the opera- tion of its plant and machinery.
“Despite the challenges of the volatility and uncertainty attributed to external global factors, the company expects to perform well against the leaner terms of trade.
“In addition, Masteel’s ideal location enables it to continue to capitalise on the ongoing robust construction activities within the Klang Valley.
“For its export sales, the company has relentlessly strived to grow its footprint in foreign markets, its efforts has been rewarded by the encouraging receipt of export sale orders from the company’s wellestablished multinational network,” it added.
It proposed a first and final single-tier dividend of one sen for the year ended Dec 31, 2011.