April 29 (Bloomberg) -- PT Krakatau Steel, Indonesia’s largest maker of the metal, said it posted a 76 percent drop in first-quarter net income as sales declined and costs increased. Krakatau shares fell.
Profit in the three months ended March 31 plunged to 113.5 billion rupiah ($13.2 million), or 9 rupiah a share, from 468 billion rupiah, or 30 rupiah a share a year earlier, the Jakarta-based company said in a filing to the stock exchange yesterday.
Revenue fell to 4.2 trillion rupiah from 4.4 trillion rupiah, Krakatau said. Cost of goods sold rose to 3.8 trillion rupiah from 3.5 trillion rupiah, it said.
Krakatau joined other steelmakers in Asia in reporting lower earnings as rising energy and raw material prices increased the cost of production. Crude oil rose about 17 percent in the first quarter on concern that tensions in the Middle East and North Africa may disrupt supplies.
South Korea’s Posco, the world’s third-biggest steelmaker by volume, said net income fell 33 percent in the first quarter to 927 billion won ($863.5 million), the company said in a filing April 22.
Krakatau fell 1.7 percent to 1,150 rupiah a share at 11:30 a.m. midday break in Jakarta trading. The stock has declined more than 4 percent this year, compared with the 2.6 percent gain on the benchmark Jakarta Composite index.
To contact the reporter on this story: Yoga Rusmana in Jakarta at firstname.lastname@example.org
To contact the editor responsible for this story: Greg Ahlstrand at email@example.com