KUALA LUMPUR: Southern Steel Bhd has narrowed its net loss to RM37.58 mil in the third quarter ended March 31 from RM41.57 mil in the same period a year earlier.
Revenue declined to RM470.37 mil from RM699.96 mil previously, it said in a filing with Bursa Malaysia today.
The lower revenue in the current quarter was due to lower sales volume and selling price, while the lower loss before tax of RM38 mil recorded in 3Q compared with RM56 mil in the same period a year earlier was due to improved margin from lower inventory cost, it said.
On prospects, the company said the Covid-19 pandemic had adversely affected the Group’s operations especially plants shut down due to the Movement Control Order implemented since March 18.
It said although the Group had recently obtained permission from the Ministry of International Trade and Industry to begin operations, the management will have to understand fully the supply chain and market demand before production can be stepped up.
“Therefore the board has decided to suspend all views on the prospects of the Group until such time that the overall impact of the pandemic on the Group becomes clear.
“In the meantime, the management’s focus is to conserve cash within the business. All senior managers have agreed to a voluntary reduction in base salary and we will continue to explore ways to reduce costs,” it said. – May 18, 2020, Bernama
