Melewar's Earnings

One of the earnings that caught my attention tonight was Melewar Industrial Group. Quarterly rpt on consolidated results for the financial period ended 30/9/2008

It reported sales revenue of 220 million. Losses for the quarter totalled 95.5 million!

I wrote on this stock before back in April 2008: Melewar Bids for RM2.2 Billion Monorail Project!

It had some 416.449 million in borrowings then when I wrote on it in April 2008.

Now loans is at 533.775 million!

This is the company review of its own earnings performance.

• The Group recorded a total revenue of RM220.9 million for the 1st quarter ended 30 September 2008, a significant increase of 59% over the preceding year's corresponding quarter of RM138.9 million, on the back of a higher sales volume of steel related products.
  
  Notwithstanding the increase in total revenue, the Group recorded a loss after tax of RM94.4 million for the quarter under review compared to a profit after tax of RM8.9 million in the preceding year’s corresponding quarter. The decline of RM103.3 million is attributable mainly to the fair value loss suffered on a financial asset of RM137.6 million (net of tax), partly offset by a write back of allowance for shares under litigation of RM30.5 million (net of tax).
  
  For the current quarter under review, the Company’s principal subsidiary, Mycron Steel Berhad, posted a profit after tax of RM3.2 million, which is RM1.3 million or 68% higher than the RM1.9 million achieved in the corresponding quarter of the preceding year. The better performance attained is principally due to a 70% increase in the total revenue from RM79.8 million to RM136.0 million, contributed mainly by a higher sales volume.