Krakatau suffers losses on weak demand

By Romel S. Gurky

IDX-listed steel maker PT Krakatau Steel Tbk said that its financial performance in the first nine months of this year has been under severe pressure due to weak demand and lower price amid the country?s slower economic growth.

The company said in a presentation material recently that revenue in the first nine months of this year declined by 27 percent compared to the corresponding period of 2014.

As a result, Krakatau booked a gross loss of US$20.9 million during the nine-month 2015 period compared to a gross profit of $32.1 million in the same period of 2014.

Meanwhile, operational profit increased to $123.2 million from $62.9 million. The company said that it recorded a net loss of $160.2 million in the January-September period of this year. It did not provide comparative figure.

Elsewhere, Krakatau said demand has started to pick in the third quarter as the government began spending for infrastructure projects.

Editing by Reiner Simanjuntak