Southern Steel Bhd has recorded a pre-tax profit of RM3.45 million for the three-months ended Sept 30, 2010, a significant drop compared with RM40.86 million registered in the previous corresponding period.

However, revenue increased to RM619.23 million from RM561.88 million previously.

In a Bursa filing today, the company said its lower pre-tax profit was due to reduced margins.

For the nine-month period ended Sept 30, 2010, Southern Steel recorded a pre-tax profit of RM102.91 million against a loss of RM54.48 million chalked up in the previous corresponding period.
Revenue increased to RM1.93 billion from RM1.44 billion registered in the last previously.

Demand will pick up when more construction projects are implemented under the Economic Transformation Programme, it said.

The company expects performance to remain satisfactory for the rest of the financial year. -- Bernama