Review Of CSC Steel Earnings

Here's an update of CSC Steel earnings reported last night.

Firstly before I look at the earnings, I wanted to remind myself what CSC earned the previous quarter as any comparison with previous year would distorted because the previous year was simply a total wipeout for the steel industry.

Last November 2009, from the posting Review Of CSC Steel Latest Earnings

• CSC Steel 3Q net profit up 42% to RM39m
  Written by Joseph Chin
  Friday, 13 November 2009 19:57
  
  KUALA LUMPUR: CSC Steel Holdings Bhd posted net profit of RM38.89 million in the third quarter ended Sept 30, an improvement of 42% from RM27.32 million a year, mainly due to the absence of the write-down in inventories.
  

Absence of inventories CSC posted an impressive earnings of rm 38.89 million.

So how did CSC fared last night?

This is where one have to be honest with oneself as it is imperious not to read what's not there.

Anyway, earnings came in at 37 million. How do you want to view this 37 million in earnings?

Well, against previous year, needles to say, its way too impressive.
Against previous quarter earnings of 39 million, this is a slight decline in earnings, no?
And since if it's a slight decline, one would be left wondering about the sustainability of the earnings.

As many know, I do NOT like to focus on sales revenue. However, sometimes I do take a peep. This peeping exercise assist me in gauging what is happening. Previous year it did 1.3 billion in sales. This year it only did 869 million. How would you assess this? Would you say that despite the improvement in earnings, the steel sector is clearly indicating that business in the sector isn't really booming? Some would say that this is too negative thinking, garbage. They would rather say that if sales improve, earnings would surely be more fantastic for CSC! How?

Anyway, here's the balance sheet.


Compared to the balance sheet in the posting Review Of CSC Steel Latest Earnings, what could I say but it's impressive?

And the main concern or issue against CSC was the unit trust investments. Mentioned previously.

• CSC Steel has some 58.506 million in Unit Trust Funds!Is it too much?

Here's what CSC said it's holding last night.

How?
Same old same old eh?