FAW Xiali Automobile Ltd., which makes Toyota's Vios and Corolla sedans, reversed a first-quarter loss to record a net profit of 92.68 million yuan (US$11.44 million) from April to June, versus 61.7 million yuan a year ago, according to calculations based on previously announced figures.

Xiali, China's fourth-largest listed carmaker by capitalization, had posted a 32.1 million yuan loss in the first quarter as the world's third-largest vehicle market fell under margin pressures, with steel prices soaring to a decade high while domestic competition intensified.

"Prices of raw materials such as steel fluctuated sharply in the first half of this year," it said in a statement in the Shanghai Securities News on Saturday, adding it had cut prices on some of its sedans since the start of 2005.

"But our strong marketing efforts helped raise overall margins," it said without elaborating.

Domestic steel prices began to fall in April, though they remained at multi-year highs after peaking in the first quarter.

Xiali sold 97,750 sedans in the first half, up 65 percent from the same period of last year. But turnover rose a much slighter 11 percent to 3.44 billion yuan.