TKC Steel posts PHP 202 million loss in H1

Tuesday, 24 Aug 2010
It is reported that TKC Steel Corporation has narrowed losses to PHP 202 million in the first half of 2010 from PHP 320 million in the same period a year earlier due to higher sales and lower operating expenses.

It said in its financial statement that "Sales increased to PHP 1.335 billion in 2010 from PHP 1.027 billion in 2009, an increase of 30%."

The first half performance allowed the group to post a lower negative gross profit of PHP 98 million in the first half compared with the negative gross profit of PHP 147 million in the first half of 2009.

TKC Steel said that operating costs were cut by 40% to PHP 103 million from PHP 172 million in the first half last year due to lower finance charges, miscellaneous expense and one-time gain from lease transactions.

In the third quarter, the company will start commissioning its PHP 450 million blast furnace in Northern Mindanao.

Higher production of 400,000 tonnes per year from the current rated capacity of 300,000 tonnes per annum will lessen the supply gap for steel billets, a raw material for steel bars and wires.

It may be noted that in February 2010, TKC Steel appointed PricewaterhouseCoopers Financial Advisors Inc to help secure as much as USD 1 billion in fresh financing to put up an integrated steel plant