Posted on 20 Feb 2009
Southern Steel Bhd posted a RM300mil loss in the last quarter ended Dec 31, as the steep drop in steel prices eroded the value of its inventories.
Its revenue was RM489mil versus RM689mil registered in the same quarter a year earlier.
The huge losses in the last quarter dragged down the group’s full year (FY08) earnings to RM105mil from RM192mil previously.
“The lower profit was due to poor market conditions in the second half of the year and the dimunition in value of inventories,” Southern Steel said in a filing with
“The board does not expect a quick recovery and expects this new financial year to be challenging,” it added.
The company said the steel sector was probably the worst affected in terms of the drop in demand and prices, as the financial crisis dragged the world into a recession.
