Southern Steel Bhd's aggregate misfortune extended significantly in the final quarter (Q4) as a consequence of a RM141mil discount of property, plant and hardware.
The discount, which took after its unit Southern HRC Sdn Bhd's late choice to end a RM427mil fabricating contract with Danieli and C. Officine Meccaniche SpA, brought about the billet and steel bar creator posting a Q4 net loss of RM112.67mil against lost RM1.24mil a year before.
In a documenting with Bursa Malaysia, Southern Steel said this brought on the entire year misfortune inferable from its proprietors to swell 88.1% to RM221.15mil.
On July 7, Southern HRC wiped out the agreement given to Danieli, an Italian firm that supplies gear for the metal business, for the outline, make and supply of a meager piece throwing unit for delivering hot moved curls.
While Southern HRC considers that it has solid grounds to end the agreement and look for harms from Danieli, it has discounted RM141mil speaking to the aggregate promoted direct inferable expenses in charging the plant and the promoted getting costs brought about for the plant.
In spite of the compounding main concern results, Southern Steel said, operational execution for the quarter under audit and money related year were superior to that of the comparing quarter and period because of "intermitten cost surge(s) in a for the most part discouraged business sector."
On its prospects for this budgetary year, the organization, which has recorded misfortunes two years in succession, said the business sector stayed unpredictable "as the result of the shield measure petitions against the imports is as yet pending whilst the danger of shabby imports from China proceeds."
"Be that as it may, the board expects better working execution for the monetary year finishing June 30, 2017, with supported proficiency endeavors and firmer offering costs," it included.
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