Higher raw material prices push CSC Steel into loss in 3Q

KUALA LUMPUR (Nov 21): CSC Steel Holdings Bhd posted a net loss of RM14.18 million in the third quarter ended Sept 30, 2022 (3QFY22), versus a net profit of RM9.97 million in 3QFY21. 

This was mainly due to higher raw material prices, the implementation of a higher minimum wage, high inflation, as well as increase in inventory impairment, it said in a bourse filing on Monday (Nov 21). 

Quarterly revenue, however, jumped 80.42% to RM363.26 million from RM201.34 million, due to a significant increase in sales volume and a slight increase in the overall selling price. 

In the preceding quarter ended June 30, 2022, the group recorded a net profit of RM17.07 million, on a revenue of RM519.6 million.

The net loss incurred in the quarter under review slashed its net profit for the nine months ended Sept 30, 2022 (9MFY22) by 68.37% to RM14.94 million, from RM47.23 million in the corresponding period. In contrast, nine-month revenue grew 42.06% to RM1.34 billion, from RM941.77 million. 

Following the depreciation of Asian currencies and the sturdy coal prices in winter, the steel mills appear to have no room for any price adjustment under the pressure of high raw material costs, CSC Steel commented on its prospects.