KUALA LUMPUR: Leon Fuat Bhd, a manufacturer and trader of steel products, said earnings surged in the second quarter boosted by higher selling prices.

       Net profit for the three-month ended June 30 was RM32mil compared with RM2.7mil a year ago.

       Revenue shot up 73% to RM185mil.

       “We are pleased with the positive result, and we remain optimistic for the rest of the year although there are uncertainties affecting this outlook.” executive director Calvin Ooi Shang How said in a statement today.

       Ooi said the surge in steel prices globally since last year was supported by economic recovery and the gradual reopening of economies around the world.

       The expected rebound will unleash pent-up industrial demand which will hopefully maintain upward momentum for the steel sector.

       “For Malaysia, we are seeing a gradual relaxation of containment measures alongside the rapid progress of the domestic vaccination programme would lead to rebound of the economy. We support the government measures to transition society back to normality soon and an emphasis on rejuvenating the economy." he said.

       Leon Fuat is mainly involved in trading and processing of flat and long steel products.

       The company said its business performance is tied to the prices of its steel products besides demand from customers.

       "In this respect, global factors such as volatility in commodities and crude oil prices as well as significant fluctuation in exchange rate of foreign currencies against ringgit will affect our suppliers’ pricing and hence the profitability of our steel products as some of our merchandise and raw materials are sourced from overseas," it said.