Southern Steel

KUALA LUMPUR: Southern Steel Bhd reported a net loss of RM12.7mil, or loss per share of 3 sen, against a net profit of RM202.5mil, or 48.3 sen per share, for its second quarter ended June 30 on lower steel demand and lower prices.

Group revenue fell to RM488.4mil from RM977.5mil a year ago.
“The drop in revenue was in line with the contraction in steel demand and lower prices experienced since the second half of 2008,” the company said in notes accompanying its financial results yesterday.

For the six months to June 30, it recorded a net loss of RM78.1mil against a net profit of RM298.8mil in the previous corresponding period.
On prospects, the company said the worst in this economic downturn appeared to be over .
“The board is cautiously optimistic that the performance of the group will continue to improve for the rest of the financial year,” it said.

For the financial year ending Dec 31, an interim tax exempt dividend of 2.5% (2008: first interim 7.5%) has been approved and will be payable on Sept 11.