Posted on 23 Feb 2023
MYCRON Steel Bhd slipped into the red in the second quarter ended Dec 31, 2022 (2Q23) with a net loss of RM13.53 million against a net profit of RM20.75 million a year ago, mainly due to the weak market conditions faced by the domestic steel industry and the downstream industrial steel-consumers.
In a filing to Bursa Malaysia yesterday, the steel fabricator said its revenue declined to RM134.18 million from RM251.08 million a year ago, dragged by the sharp lower sales volume recorded by the cold rolled coil (CRC) segment.
As a result, the group registered a loss per share of 4.14 sen for the period against earnings per share of 6.35 sen previously.
For the six-month period, Mycron Steel registered a net loss of RM11.96 million from a net profit of RM28.65 million a year ago, while revenue fell 36% to RM254.25 million from RM397.96 million.
Looking ahead, Mycron Steel said the improved outlook in the second half is still frothed with hurdles and may not be sufficiently intensive to turnaround the group’s full year performance.
Mycron Steel encompasses the combined operations of two main subsidiaries, namely Mycron Steel CRC Sdn Bhd (MCRC) and Melewar Steel Tube Sdn Bhd (MST).
MCRC is involved in the mid-stream sector of the steel industry, converting hot rolled coil (HRC) steel sheets into thinner gauge cold rolled coil (CRC) steel sheets. MST is involved in the down-stream sector, in the manufacture of steel tubes and pipes which are made from HRC or CRC. A smaller subsidiary, Silver Victory Sdn Bhd, is involved in the trading of steel related products
The counter yesterday closed unchanged at 41.5 sen.
Source:The Malaysian Reserve
