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Nico Steel Reports Net Loss for H1 of 2019

Steel News - Published on Fri, 11 Oct 2019

Image Source: stocksbnb.com
Singapore based Nico Steel posted a net loss of USD 283,000 for its first half of fiscal 2020, versus a net profit of USD 121,000 a year ago mainly due to uncertainties arising from the US-China trade war and fluctuations in commodity prices and currencies. Its revenue dipped 11 per cent to USD 7.1 million from USD 8 million mainly due to lower demand for the group’s proprietary Nico brand of metal alloys. These higher margin proprietary metal alloys are mainly for high-end electronics and mobile devices of global market leaders.

Mr Danny Tan, executive chairman and president of Nico Steel said that "We faced a lot of disruptions in our project pipeline with our customers who are market leaders in the mobile communications and industrial sectors as the trade dispute intensified. While we did not lose any customer and we continue to work with them on the metallurgical and material solutions for their devices, the uncertainties arising from trade tariffs as well as the delays in the rollout of 5G mobile networks affected the progress and intended timelines were extended. This inevitably had a negative impact on us as everyone took a wait-and-see approach and become more price-sensitive.”

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Posted By : Rabi Wangkhem on Fri, 11 Oct 2019
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