On back of a $9.8m inventory write down.
Asia Enterprises booked a net loss of $12.1m in FY15 on back of a $9.8m inventory write-down.
According to the steel products distributor media release, it experienced with challenging business conditions during the financial year due to the protracted downturn in the global steel industry. Demand for steel products from end-user industries remained tepid amid the uncertain global economic climate and downturn in oil-related industries.
As a result, the company suffered through a sales volume contraction in line with lower steel requirements of its customers. Together with the impact from its products’ reduced average selling prices, Asia Enterprises’ revenue took a 50% nosedive to $32.3m.
In view of the sustained sinking of steel prices, the company resorted to writing down the value of certain steel products by $9.8m in 4QFY15. While the company attempted to rein in operating overheads and expenses, cost control measures were ultimately unable to cushion the blow of the revenue decline and inventory write-down.
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