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Ann Joo Resources Reports Net Loss for 2019

Steel News - Published on Wed, 26 Feb 2020

Image Source: The Edge Market
Malaysian steelmaker Ann Joo Resources Bhd reported a 41% drop in fourth quarter net profit to MYR 19.52 million, from MYR 33.02 million a year ago, on lower selling prices and the supply-demand imbalance in the domestic market. Rvenue contracted 10.7% year-on-year to MYR 603.71 million, from MYR 675.73 million, mainly due to lower selling prices and domestic sale tonnage, offsetting higher exports. Ann Joo attributed this to the imbalance of supply-demand in the domestic market, due to excessive supply from foreign-owned steel mills as well as weaker demand.

Following the weaker 4QFY19 earnings, Ann Joo slipped into the red for the full year with a net loss of MYR 89.86 million, compared with a net profit of MYR 149.54 million in FY18. This is its first annual loss since FY15. The loss came about despite the group’s annual revenue holding up well with only a 4% drop to MYR 2.22 billion, from MYR 2.32 billion in FY18.

Ann Joo noted that the Covid-19 outbreak in China has disrupted supply chains and steel prices, contributing to short-term market uncertainty and risks, but expects steel consumption to be supported by the government’s fiscal and monetary policies going forward.

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Posted By : Nishith Sharma on Wed, 26 Feb 2020
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