SINGAPORE (Nov 9): Hupsteel swung back into profitability in 1Q18 with earnings of $4.7 million from losses of $0.17 million in 1Q17 with the sale of the investment property.
Revenue rose 6% to $12.8 million. But the quarter saw other gains of $4.4 million compared to other losses of $0.1 million a year ago.
Gross profit margin was affected by stiff competition and higher costs due to stronger US dollar. This caused gross profit margin to slide slightly to 24.5% from 26.4% in 1Q17.
The group therefore reported lower gross profit of $3.1 million for 1Q18 compared with gross profit of $3.2 million for 1Q17.
In its outlook, Hupsteel says demand for structural steel products, pipes and fittings has not improved since the last quarter and is expected to remain soft in the coming quarters with end of year holidays and various upcoming festivities.
Shares in Hupsteel last traded at 90 cents.
