Mainboard-listed Hupsteel today announced that the group achieved revenue of $46 million (1QFY10: $36.9 million) for the quarter ended 30 September 2010 (1QFY11) with profit after tax of $1.8 million (1QFY10: $1.9 million).

Lim Kim Thor, CEO of Hupsteel, says, “Demand for steel products softened slightly during the last quarter due to the weak recovery in the global markets and amidst signs of slowing down in the local economy. This was evidenced by the lack of new shipbuilding and oil & gas projects announced during the last quarter. However, we are looking forward to new infrastructure projects like the Sports Hub where there may be an opportunity for the group to supply to.”

In reviewing the operating performance, Lim adds, “Gross profit margin of 14.1% for 1QFY11 was slightly lower than 15.9% for 1QFY10 and 17.5% for 4QFY10 due to the write-back of $0.7 million and $1.0 million respectively from the provisions for inventory write-down and changes in sales mix.

“The group will continue to exercise prudence in its inventory management in view of the prevailing soft market demand. With a strong cash holding of $66.4 million, it will be able to respond quickly to any upturn in demand and protect itself against any shocks arising from the uncertain market conditions.”