Leon Fuat executive director Calvin Ooi Shang How
KUALA LUMPUR: Leon Fuat Bhd
, which posted a net profit of RM14.02mil in the second quarter ended June 30 (2Q), is neutral as to the prospects for the remaining quarters of the year due to the softening of steel prices and the weaker ringgit.
“We have increased monitoring of steel prices and related currencies and continue to take proactive measures including negotiating forward contracts, where necessary, as well as prudent inventory management, to reduce any negative impact which may arise.
“The group will strive to keep operating costs at manageable levels while enhancing operating capabilities and efficiencies to meet customer requirements and to ensure timely satisfaction of customer orders,” executive director Calvin Ooi Shang How said in a statement.
The steel and metal manufacturer reported a 35.8% increase in revenue to RM250.93mil in 2Q compared with RM184.78mil recorded in the corresponding quarter of the preceding financial year.
For the six months ended June 30, Leon Fuat registered a 32.2% increase in revenue to RM523.95mil compared with RM396.26mil recorded in the six months ended June 30, 2021.
It posted a net profit of RM37.93mil, or earnings per share of 11.12 sen against RM68.24mil, or 21.35 sen a year earlier.
"We saw higher overall revenue on the increased contributions from the trading and processing of steel products, but a combination of lower overall gross profit margin and inventories written down of RM13.88mil in the current quarter as certain inventories were measured at its estimated net realisable value weighed on pretax profit,” Ooi said.
