Press Metal Q1 profit up, thanks to higher prices

PETALING JAYA: Press Metal Aluminium Holdings Bhd’s net profit for the first quarter ended March 31 jumped 1.6% to RM150.48 million from RM148.05 million a year ago, mainly due to the higher metal price during the current year quarter under review.
The group revenue increased 9.9% to RM2.13 billion compared with RM1.93 billion in the previous year’s corresponding quarter also mainly attributable to the higher metal price during the current year quarter.
It said the financial performance of the first quarter would have been stronger if not because of prolonged high carbon prices and weakening US dollar. However, the company expects a reversal of high raw material prices in the coming quarters.
Group CEO Tan Sri Paul Koon said it recognises that there will be continuous shifts and reactions in global aluminium markets caused by unsettled development from US sanctions. Recent production volume disruption from Brazil has caused sudden spike in alumina prices.
“The management is closely monitoring the changing market landscape and has control measures in place, to respond to price volatilities on both aluminium and raw material fronts.
Such external shocks have proven the resilience of aluminium prices, which could benefit producers like Press Metal,” he said.
Looking forward, it is focusing on streamlining its acquisition of Leader Universal Aluminium and expanding its value-added capacity.