General Steel Holdings Posts Wider Q2 Loss - Quick Facts

(RTTNews) - General Steel Holdings, Inc. (GSI) reported a net loss attributable to company of $615.0 million, or $9.80 per share, for the second quarter ended June 30, 2015. Excluding the one-time non-cash impairment charges, adjusted net loss attributable to General Steel would have been $36.7 million, for the quarter. In the second quarter of prior year, the company reported a net loss attributable to General Steel of $11.0 million, or $0.20 per share.

Excluding the one-time non-cash impairment charges, adjusted loss from operations for the second quarter of 2015 would have been $34.2 million.

Total sales decreased by 10.1% year-over-year to $528.8 million, compared to $588.0 million in the second quarter of 2014. The company said the year-over-year sales decrease was primarily due to the significant decreases in the average selling price of rebar, partially offset by the higher sales volume.

John Chen, CFO of General Steel, said: "As we forge ahead with our business transformation, in the second quarter we proactively revalued our steel-manufacturing equipment in Longmen Joint Venture, and took a write-down of $973.9 million in its carrying value to better reflect the current market conditions. We believe this will lighten future depreciation burden and better enable the Company to adopt new business models."