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BRC Asia's board expects company to turn a profit in Q3
MAINBOARD-LISTED steel dealer BRC Asia should return to the black in its third quarter, helped by its purchase of industry peer Lee Metal, the board told shareholders on Wednesday.
Commercial and cost synergies from the Lee Metal acquisition, "as well as an improving business environment", helped to lift the latest quarterly performance, the board said.
BRC had reported a wider loss of S$7.74 million for the same period in the previous year, which the board attributed to contract provisions and impairment of receivables from the acquisition.
But BRC is now expected to report higher profits for the third quarter and nine months to June 30, the board said in its profit guidance on the Singapore Exchange website.
Unaudited financial results are expected to be released by Aug 14. "In the meantime, shareholders and investors are advised to exercise caution when dealing in the shares of the company," the board added.
BRC Asia shed S$0.02 or 1.46 per cent to S$1.35 on Wednesday before the guidance was issued.