KUALA LUMPUR: Leon Fuat Bhd's net profit fell to RM162,000 in the third quarter (Q3) of 2024 from RM5.3 million in the same period last year.
This was mainly due to the write-down of inventories and lower other income, which dropped by RM340,000 due to reduced realised and unrealised foreign exchange gains and lower gains on disposal of plant and equipment.
Revenue eased 2.5 per cent to RM230 million from RM236 million a year ago.
In the first nine months, Leon Fuat's net profit fell 56 per cent to RM12 million from RM27.9 million last year.
Its revenue declined slightly by 0.69 per cent to RM682.7 million from RM687 million previously.
Leon Fuat executive director Calvin Ooi Shang How in a statement said the Q3 presented ongoing challenges for the steel industry, with fluctuating prices and rising operational costs putting pressure on our profitability.
However, he said the company remains focused on enhancing efficiencies and maintaining prudent cost management to navigate these hurdles
"Looking forward, we are hopeful about the final quarter. While external challenges such as steel price volatility and currency fluctuations persist, we will continue to leverage our operational strengths and strategic initiatives to maintain profitability and create long-term value for our stakeholders," he added.