The steel product maker, property developer and lubricant distributor swung to earnings of RM27.79mil for the quarter from a loss of RM2.52mil a year earlier mainly due to the improved performance of its steel division.
The company, whose performance during the loss-making years had been dragged down mainly by the steel business, told Bursa Malaysia that the steel segment’s profit from operations grew 158.4% to RM29.85mil.
The group also shared a lower loss of RM6.6mil from the associated companies and a joint venture compared with RM12.8mil in the previous year.
The bottom line was also supported by an exceptional gain of RM10.3mil on disposal of an associate company.
Lion Industries’ revenue rose 23.9% to RM637.31mil in Q1, mainly thanks to the higher contribution from its steel and building materials divisions.
On prospects for the year, the company said the operating environment for the steel business for the current quarter was expected to remain positive in view of the lower imports and the gradual increase in the domestic demand for steel products from the increased implementation of the infrastructure projects currently in the country.
Nonetheless, it said, the group would stay vigilant and responsive to market changes and steadfastly continue with its efforts to improve operating performance for the quarter.