Charlotte Mathews
10 November 2009
Johannesburg — STEEL products company BSi Steel bounced back to make a small interim profit from a loss in the preceding six months after a tough period in which prices of steel items plummeted, it reported yesterday.
The CRU global steel price index more than halved between July last year and April, reflecting the recession and overstocking in industries ranging from vehicle making to construction and transport . SA's steel prices followed the trend between last November and June.
BSi chairman William Battershill said trading conditions were volatile during the reporting period. "April and May were particularly challenging as prices continued to decrease in a poor demand environment. We saw some price stability in June, with modest price increases and improving volumes in July. In August and September, our volumes and margins normalised, and we reported good profits for these two months."
BSi Steel made a profit of R1,2m compared with a loss of R27m in the six months to March and a profit of R127m in the six months to September last year, reflecting the deterioration in operating conditions.
Interim revenue dropped to R662,5m from R1,1m in the same period last year and headline earnings fell to 0,28c per share from 17,7c, but were based on fewer shares in issue as BSi Steel had been buying back shares.
Battershill said there were signs of improvement in international steel prices but many sectors in SA had not yet turned .
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