Siderar, the largest flat rolled steelmaker in Argentina, has released financial statements that show a loss of US$109.5 million during the last quarter of 2008, which the company attributes to the worldwide financial crisis.
Specifically, the firm said that the loss occurred due to reduced production caused by the lack of demand as well as the cost of high inventories and the drop in steel prices. Back in January, the company suspended its US$1.2 billion plans to increase production capacity, citing the weak steel demand and global economic downturn.
Siderar's Q4 loss compares to earnings of US$109.4 million in the same period of 2007, and is the company's first net loss since the Q1 2002.
Siderar is controlled by Luxembourg-based Ternium SA, which is still in negotiations with the Venezuelan government for compensation in exchange for the nationalization of its Venezuelan unit, Sidor.