- CSC Steel Holdings’ (CSC Steel) 4Q16 net profit sank 78.3 percent to RM6.2 million, due to significant increase in production cost attributable to higher raw materials prices and weaker Malaysian ringgit.
- This is in spite of revenue rising 18.3 percent to RM286.9 million primarily due to higher sales volume and higher selling prices of its steel products.
- For the full year 2016, the group’s net profit climbed 25.8 percent to RM68.7 million on the back of 1.7 percent growth in revenue to RM1 billion.
- The prices of CSC Steel’s main raw material hot rolled steel have been trending up due to the rising coking coal and iron ore prices.
Significance: Moving forward, CSC Steel expects the weak ringgit and volatile business environment to continue to affect local demand for its steel products and its ability to pass on further cost increases to its downstream customers. However, the group is cautiously optimistic to confront the challenges and produce better results in 2017.