KUALA LUMPUR: Lion Industries Bhd swung into the red with net loss of RM18.7 million in the first quarter ended Sept 30, 2010 due to a decline in volume of steel sold and higher raw materials.

It said on Tueday, Nov 23 revenue declined 19.2% to RM1.09 billion from RM1.35 billion. Loss per share was 2.6 sen compared with earnings per share of 9.78 sen.

Lion Industries said the decline in revenue was mainly due to lower sale of the steel products in the domestic and overseas markets largely due to a steep contraction in steel consumption and higher raw material costs.

"As such, the group recorded a loss from operation of RM37 million as compared to a profit of RM71 million a year ago," it said.