CSC Steel Holdings Bhd posted a pre-tax loss of RM1.98 million for its third quarter ended Sept 30, 2011 from a pre-tax profit of RM2.39 million in the same quarter last year.

However, revenue rose to RM320.61 million from RM192.67 million.

In a filing to Bursa Malaysia today, CSC Steel said the group’s revenue increased by 6.8 per cent from RM300.3 million in the preceding quarter to RM320.6 million in this quarter, due to the increase in sales volume of its steel products, albeit at lower selling prices.

“As a result of the selling price contraction, profit before tax of RM8.3 million in the corresponding quarter reduced by RM10.3 million, to register a loss before tax of RM2.0 million,” it said.

Moving forward, CSC Steel said the unfavourable market conditions which have eroded its margins in this quarter have continued into the fourth quarter.

“As external economic forces are depressing selling prices, the group is looking into increasing its export volume in order to reduce its unit production cost and thereby achieve a higher margin for its products,” it added.

Barring any unforeseen circumstances, the group is cautiously optimistic that results for 2011 should be positive. — Bernama