Steel-pipe maker, JAKS Resources Bhd, has returned to the black with a pre-tax profit of RM4.4 million for financial year ended Oct 31, 2010 compared to a pre-tax loss of RM2.4 million in 2009 financial year.

In a filing to Bursa Malaysia today, JAKS said the improvement was mainly due to recovery in selling prices of various steel-related products and better margins as compared with previous year.

It said despite a higher pre-tax profit, its turnover, however, decreased by seven per cent to RM257.3 million from RM278.1 million previously.

For the fourth quarter ended Oct 31, 2010, it recorded a pre-tax profit of RM2.5 million compared to a pre-tax loss of RM580,000 in the same quarter of 2009.

Its revenue increased by 38 per cent to RM85.7 million from RM62.3 million previously.

On prospects, JAKS said the outlook for the steel industry was expected to improve in anticipation of the spending for infrastructure and development projects, which required vast amount of steel-related products.

However, JAKS said, it was aware of the challenges and competition in the market.

JAKS said it would continue to review its internal efficiencies, remain committed to continuous productivity improvement and manage its operation cost in order to be more competitive,' it said. -- Bernama