KUALA LUMPUR: Steel maker ANN JOO RESOURCES BHD posted bigger losses in the first quarter ended March 31, as the Covid-19 pandemic hit demand at home and abroad.
Lower selling prices of steel products during the quarter made it worst for the company.
For the first three months of the year, Ann Joo registered a net loss of RM30.56mil compared with a net loss of RM6.6mil a year ago.
Revenue declined to RM446mil from RM538mil previously.
The company warned of another bad quarter ahead.
“The steel industry will be continuously affected by production stoppages, disrupted supply chains, and a sharp decline in steel demand in the second quarter of the year,” it said.
Steel consumption, it said, was expected to improve gradually in the second half of the year.
“However, the magnitude of this recovery remains uncertain,” it said.