Malaysia-based steelmaker Ann Joo Resources (AJR) has announced a net loss of MYR 30.56 ($7.13 million) million for the first quarter of the current year, compared with a net loss of MYR 6.6 million recorded in the corresponding period of the previous year, according to a filing by AJR on June 30 at Bursa Malaysia, the Malaysian stock exchange. The company attributed the loss to lower sales and decreasing steel selling prices amid the coronavirus pandemic.
AJR reported a revenue of MYR 445.67 million ($103.96 million) in the given period, down by 17.2 percent year on year, due to lower sales tonnages for both the domestic and export markets.
The company said that production stoppages, disrupted supply chains, and a sharp decline in steel demand will continue to negatively affect the steel industry in the second quarter of the year, while steel consumption is expected to improve gradually in the second half of the year, AJR added.
The company also stated that domestic steel demand will continue to be affected by a low resumption rate of construction activity and the pace of recovery in steel demand will depend on the government’s spending on infrastructure projects on a large scale. Accordingly, the company plans to strengthen its strategy for the export markets.
AJR will focus on cash flow management and cost-reducing programs in order to accommodate itself to the changing conditions in the market due to the uncertain market conditions, readjusting its strategy.