Dumping activities pushes Lion Corp into the red

PETALING JAYA: Lion Corp Bhd turned to the red for the fourth quarter ended June 30, 2014, registering a net loss of RM301.59 million compared with a net profit of RM12.23 million in the previous corresponding period, as the steel division continued to be affected by the dumping activities.
Its full-year's net loss also widened to RM526.49 million versus RM245.62 million a year before.
Revenue for the fourth quarter and full-year period declined 10.29% and 4.24% to RM657.42 million and RM2.48 billion respectively, on the back of lower sales volume for flat steel products.
In a filing with the stock exchange, Lion Corp said the dumping activities had resulted in an additional RM189 million impairment loss for goodwill for the fourth quarter, thus making a widen net loss.
The group said it will continue to work closely with the government to address the problem of excessive imports at dumping prices following the initiative by the government to study the possibility of imposing anti-dumping duty on several types of steel products, which are imported from certain countries.
"In the light of uncertainties surrounding the measures to be implemented, the operating environment for the group is expected to remain challenging in the next financial year," it added.