Southern Steel profit boosted by higher sales

Southern Steel Bhd recorded a 64% year-on-year (YoY) rise in net profit to RM52.27 million for its third quarter ended March 31, 2018, on higher sales volume.

In a filing with Bursa Malaysia yesterday, the Penang-based steel producer posted a 43.2% YoY increase in turnover to RM953.37 million. Year-to-date, net income nearly doubled to RM175.64 million from RM89.21 million in the corresponding quarter last year, while revenue rose 41.9% YoY to RM2.81 billion from RM1.98 billion on higher sales and improved margins.

Southern Steel expects its performance to remain satisfactory for the year ending June 30, 2018, despite weaker demand projected in the final quarter of the year.

The company declared an interim single tier dividend of 3.5 sen per share for the period under review. Its shares ended 2.15% higher yesterday at RM1.90 to give the company a market capitalisation of RM823.15 million.