More results announcement from Steel players

Onasteel, Lion Industries ("Lion Ind") & Lion Corp had reported their results for QE 30/6/06. The result for Onasteel is very encouraging. Net profit increased 11 folds to RM22.7 mil q-o-q on the back of a 23%-increase in turnover to RM249 mil. On a y-o-y comparison, net profit & turnover are off by 16.6% & 15.9% , respectively (see atble 1 below).








Table 1: Onasteel's Financial Results for QE 30/6/06.

The results for Lion Ind & Lion Corp are harder to analyse because they are both conglomerates. From a study of the notes to the account, Lion Ind reported a 29%-drop in the operating loss for the Steel division to RM14.7 mil on the back of 30%-increase in turnover to RM807 mil for QE 30/6/2006 when compared to the immediately preceding quarter. For Lion Corp, the Steel division has also reported a 41%-drop q-o-q in its operating loss to RM43.8 mil on the back of a 66%-increase in turnover to RM973 mil for the same period. I have appended the results for QE 30/6/06 for these companies for your viewing.
















Table 2: Lion Ind & Lion Corp's Financial Results for QE 30/6/06.

So, we are still awaiting more results that may confirm the recovery in the steel sector is for real.