Kinsteel Bhd has recorded a lower pre-tax profit of RM16.938 million for its third quarter ended Sept 30, 2009, compared to RM102.744 million in the same quarter last year.
Its revenue fell to RM457.684 million from RM844.914 million previously following lower steel prices in the quarter, the group said in a statement today.
Nevertheless, Kinsteel said its performance was better than the preceding quarter where it recorded a pre-tax loss of RM74 million.
The improvement was mainly due to improved prices for steel products, it said.
For the nine-month period, Kinsteel posted a pre-tax loss of RM150.388 million, a reversal from its pre-tax profit of RM385.640 million in the same period last year.
Its revenue during the period fell to RM1.537 billion from RM2.08 billion previously.
The group is optimistic for the current financial year despite uncertainties in the economic climate as implementation of the government's spending under the stimulus package commenced.
Improvement in steel demand will depend on, among others, the effects of the government's stimulus packages, continuous stabilisation of the financial system and return of consumers' confidence, it said.
"While the operating climate is likely to remain challenging for the fourth quarter, there are signs of improvement in the market recently which augurs well for the group," it added. -- Bernama
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