Posted on 12 Nov 2024
Southern Steel Bhd's net loss narrowed to RM25.69 million for the first quarter ended Sept 30, 2024 (1QFY2025), from RM39.59 million a year earlier, thanks to improved margins from favourable input cost.
Loss per share reduced to 4.31 sen from 6.64 sen in 1QFY2024, the company's bourse filing showed.
Quarterly revenue fell 4.49% year-on-year to RM574.81 million from RM601.81 million due to lower selling prices.
Southern Steel said the global steel industry continues to grapple with persistent headwinds such as declining demand, structural overcapacity and escalating geopolitical uncertainties.
Amid the challenging market, Southern Steel said it will continue to focus on improving its operational efficiencies, inventory management and growing downstream businesses.
However, the company said the mid- to long term industry outlook appears to be promising as the government is working on new policy framework to drive sustainable growth of the Malaysian iron and steel industry.
"An independent committee was established in January 2024 to address the challenges and ensure the resilience and sustainability of the industry," it noted.
Southern Steel’s share price closed down half a sen or 0.9% to 55 sen on Monday, bringing the group a market capitalisation of RM328 million.
Source:The Edge
