KUALA LUMPUR: Kinsteel Bhd reported a net profit of RM8.18 million for its second quarter ended June 30, 2010 from a net loss of RM7.87 million a year ago.

Its revenue for the quarter, however, fell to RM374.69 million from RM639.12 million a year earlier. Earnings per share was 0.87 sen compared loss per share of 0.86 sen last year.

For the six months ended June 30, net profit was RM30.73 million versus net loss RM42.64 million in 2009. Revenue for the period, however, declined to RM915.09 million from RM1.08 billion.

In a filing to Bursa Malaysia on Friday, Aug 27, Kinsteel said the increase in its profits was due mainly to higher steel prices.

On its current year prospects, Kinsteel said its financial performance during the first half of the year had been satisfactory due to the healthy increase of steel prices and demand from local and surrounding region, though hampered by increasing cost of raw materials.

?The group however remains cautious of price volatility and will continue to be vigilant on its inventory stocking strategy to achieve reasonable margin for the year,? it said.