LB Aluminium’s net profit drops 71% in Q2, revenue increases 7.3%

LB Aluminium Bhd, the largest supplier of aluminium extrusion in Malaysia, announced its net profit and revenue for the second quarter ended October 31, 2017.

The company’s revenue increased 7.3% to RM126.94 million compared to RM118.28 for the preceding year correspondence quarter due mainly to higher average selling prices.

 LB Aluminium Bhd’s net profit for the second quarter ended October 31, 2017 decreased 70.8% from RM5.78 million to RM1.67 million as a result of reduced margins owing to higher raw materials input costs.

“Looking ahead, the Group has taken cognisance of the heightened supply-demand imbalances in the property market and highlighted by Bank Negara Malaysia recently, and is strategising to mitigate the potential adversity by focusing on the export market as well as possibilities of product diversification.”

“Rising operating costs particularly raw material costs, continue to be of concern to the group, and hence operational efficiencies remain a priority for the Group.”

Barring unforeseen circumstances, the Board is optimistic that the Group will remain profitable for the remaining of the financial year.”