Argentina's largest flat rolled steel producer Siderar SA, part of international conglomerate Ternium SA, the largest steel maker in Latin America, has reported a second straight quarterly loss in Q1 2009 due to falling global demand for steel.
Accordingly, Siderar SA has registered a net loss of ARS 337 million ($91 million) for the first quarter of 2009, compared to ARS 566 million ($153 million) in the same period of 2008.
The company had also posted a net loss of ARS 388 million ($105 million) for the fourth quarter of 2008, its first net loss in nearly seven years.
Meanwhile, Siderar's net sales fell by 24 percent year on year to ARS 1.4 billion ($379 million) in the first quarter of 2009. Domestic shipments fell 60 percent during the first quarter compared to the year-ago period, while total shipments fell by a more measured 21 percent as exports rose.
Siderar blamed the drop on stymied activity in the construction and automotive industries amid the global downturn, which has curtailed shipments and the price for flat rolled steel, although lower costs offset the loss slightly.
Siderar expects the decline in local demand to continue through 2009.
$1 = ARS 3.69078