Perwaja Holdings Bhd returned to the black with a pre-tax profit of RM10.3 million in the second quarter ended June 30, 2010 from a pre-tax loss of RM94.9 million in the same period last year.

The group's revenue increased 7.6 per cent to RM465.2 million from RM432.3 million previously.

For the first six months ended June 30, 2010, the revenue and pre-tax profit were higher at RM838.9 million and RM32.9 million respectively compared with a revenue of RM750.8 million and and pre-tax loss of RM168.2 million in the same period last year.

In a filing to Bursa Malaysia today, Perwaja said the group's financial performance for the first half year has been satisfactory, supported by the positive rise in steel prices and healthy domestic and regional demand, although tampered by the higher cost of raw materials.

'In view of the volatility in iron ore price, the group will adopt a prudent approach going forward and will monitor the price fluctuations closely while fine-tuning its inventory stocking strategy,' it added. -- Bernama