Financial Highlights

By Tan Xue Ying

KUALA LUMPUR (Feb 28): Malaysia Steel Works (KL) Bhd (Masteel) posted a loss of RM24.87 million in the fourth quarter ended Dec 31, 2018 or a loss per share of 5.84 sen because of lower margins, impairment of inventories and higher administrative expenses.

In the year-ago quarter, it made a net profit of RM12.12 million or earnings per share of 4.02 sen.

Revenue contracted 17.4% to RM348.93 million from RM422.33 million in the same quarter a year ago, due to lower sales volume and selling price.

For the full year, Masteel’s net profit slipped to RM6.75 million, a significant decline compared with RM75.46 million recorded in FY17 despite higher revenue of RM1.5 billion, from RM1.46 billion in the previous year.

Masteel said its cost of production should be better in the Jan-March quarter as it expects to see convergence of its material costs between iron ore and scrap for steel-making.

However, the seasonal slowdown because of the Lunar New Year festivities, and a general slowdown in the construction and property sectors could further dampen demand for Masteel’s product and prices.

To counter this, Masteel said it is implementing extensive initiatives to streamline its manufacturing  processes and supply chain to improve margins.

Masteel fell three sen or 5.56% to 43 sen today, valuing the company at RM180.87 million.