Cement and steel companies continue to sink into losses

While many businesses still report large profits, some cement and steel companies continue to suffer losses. For example, VICEM Hai Van Cement Company (stock code HVX) reported revenue in the third quarter of 2024 of nearly VND 110 billion, down 14% over the same period last year. The company continued to lose after tax more than VND 8 billion (in the same period last year, it lost nearly VND 16 billion). This is HVX's 6th consecutive quarter of loss. In the first 9 months, HVX brought in net revenue of more than VND 261 billion, down 38% and a loss of nearly VND 38 billion. The total accumulated loss by the end of September was up to VND 90.3 billion.

Hai Van Cement Company said that in the third quarter, it did not produce or sell clinker due to lack of market demand and high clinker production costs, which were unfavorable for logistics. At the same time, the fixed costs of Van Ninh Cement Plant accounted for nearly VND19 billion in cost of goods sold (due to clinker production suspension), causing profits to decline.

Some steel and cement businesses continue to report losses.

In the same situation, VICEM Hoang Mai Cement Joint Stock Company (stock code HOM) announced that its net revenue in the third quarter of 2024 was more than VND 356 billion, down 23% over the same period last year; due to a deeper decrease in cost of goods sold, after deductions, gross profit was nearly VND 52 billion, up 9%. However, the increase in gross profit was not enough to offset expenses, causing HOM to lose more than VND 11 billion (in the same period last year, it lost nearly VND 27 billion). In the first 9 months, the company achieved net revenue of nearly VND 1,204 billion, down 5% over the same period last year and suffered a net loss of more than VND 51 billion. The total accumulated loss by the end of the third quarter of 2024 of the enterprise was more than VND 76 billion.

The company said the cement industry is still facing difficulties due to high supply, while the domestic and export cement markets continue to compete fiercely on price, pressure on product inventory, and excess production capacity. At the same time, the increasing trend of shifting demand from bagged cement to bulk cement has reduced the company's business efficiency due to the brand value associated with bagged cement.

Previously, Vietnam Cement Corporation VICEM reported a loss of VND863 billion in the first 6 months of 2024...

Not only cement enterprises, some iron and steel enterprises also continued to suffer losses. Specifically, Thu Duc Steel Joint Stock Company (stock code TDS) achieved net revenue of more than VND 385 billion in the last quarter, an increase of 18% over the same period in 2023. However, the sharp increase in cost of goods sold has reduced the company's gross profit margin. After deducting expenses and taxes, TDS had a net loss of VND 6.5 billion. In total, after the first 9 months of 2024, TDS recorded a sharp increase in revenue of VND 1,073 billion but a net loss of VND 9.6 billion.

Pomina Steel Joint Stock Company (POM) achieved revenue of nearly VND 503.5 billion in the third quarter of 2024, down more than 80% year-on-year. The company continued to suffer a pre-tax loss of more than VND 110 billion (a sharp decrease compared to the loss of more than VND 715 billion in the third quarter of 2024). In the first 9 months of 2024, the company achieved revenue of nearly VND 2,948 billion, down 74% year-on-year and more than VND 647 billion (in the same period last year, the company lost VND 707.5 billion). In total, by the end of September, the company had an accumulated loss of more than VND 868.4 billion.

According to the Ministry of Construction , the production and business situation of the above enterprises is still difficult because the real estate and construction materials markets have not improved. Meanwhile, the prices of materials and fuels have fluctuated and increased, foreign exchange rates have increased. Some units have had to operate and produce at a moderate level, operating at a loss, and failing to meet the assigned targets.

Source: https://thanhnien.vn/cong-ty-xi-mang-sat-thep-tiep-tuc-chim-trong-thua-lo-185241024111759486.htm