Leon Fuat posts higher Q3 net profit, revenue

Temporary anti-dumping measures on ethanolamine products produced in the Malaysia, Saudi Arabia, Thailand and the United States is also being introduced.

KUALA LUMPUR: Steelworks company Leon Fuat Bhd has posted a net profit of RM13.76mil in the third quarter ended Sept 30, up 148.7%  from RM5.5mil previously mainly due to the increase in revenue.

The revenue recorded for the current quarter and the preceding year corresponding quarter was RM177.98mil and RM115.2mil respectively, increased by 54.5% or RM62.78mil.

Leon Fuat said the increase in revenue was mainly contributed by the increase in revenue for our trading and processing of steel products by 45.4% or RM27.09mil and 64% or RM35.5mil respectively.

“The increase in revenue for trading of steel products was mainly due to higher tonnage sales by 18.8% as well as higher average selling price by 22.4%, and the increase in revenue for processing of steel products was mainly due to higher tonnage sales by 42.6% couple with higher average selling price by 15%,” it said in the notes accompanying its financial results. 

“Our main business segments continued to be trading and processing of steel products, which collectively contributed approximately 99.8% of our total revenue for the current quarter,” it added.

In the first nine months to Sept 30, Leon Fuat posted a 196.6% jump in net profit of RM52.6mil from RM17.7mil in the same period a year ago. Its revenue for the period rose 18.3% to RM431.68mil against RM364.9mil previously. 

Commenting on its prospects, Leon Fuat said: “In view of the results achieved so far, our board is optimistic that the group’s results for the remaining quarter of the current financial year will continue to be favourable.”