Midas Holdings says profit from continuing operations grew 44.3% to $13.7 million in the three months ended September 30, 2010 (3Q2010) from $9.5 million in 3Q2009. This was achieved on the back of a 34.5% jump in revenue to $49.8 million in 3Q2010 from $37.0 million in 3Q2009.

The group’s Aluminium Alloy Division continued to perform strongly in 3Q2010. Its revenue increased 34.9% to $47.4 million in 3Q2010 from $35.2 million in 3Q2009, accounting for 95.4% of total revenue.

In 3Q2010, contribution from the group’s associated company Nanjing SR Puzhen Rail Transport Co. (NPRT) increased to $3.2 million from $0.9 million. This was driven mainly by an increase in delivery of train cars to its customers.

During the quarter under review, an increase in raw material cost resulted in the gross profit margin at the Aluminium Alloy Division declining from 41.1% in 3Q2009 to 36.5% in 3Q2010. This in turn led to a lower overall gross profit margin, which decreased from 40.2% in 3Q2009 to 35.8% in 3Q2010.

As at September 30, 2010, the group had cash and cash equivalents of $98.7 million.

The group’s third and fourth aluminium alloy extrusion production lines have already commenced production and the fifth extrusion production line is currently in the installation and commissioning phase. Upon its completion, the group’s annual extrusion production capacity will increase to 50,000 tonnes.

The group is also in the process of putting up a third fabrication line, which upon completion, will allow the group to process train car body components for 1,000 train cars per annum.

“Looking ahead, we are optimistic that Midas will continue to deliver good performance,” says Patrick Chew, CEO of Midas.