Australia's largest steelmaker BlueScope on Monday reported an annual net loss of 66 million dollars (55.4 million US) and warned of more to come in the current financial year.
The loss, down from a 596 million dollar profit a year earlier, was double the amount analysts had predicted.
Chief executive Paul O'Malley said the company suffered from a collapse in demand in the second quarter as the global financial crisis engulfed its major markets.
"This was the most challenging year that BlueScope has faced," O'Malley said after unveiling the loss.
O'Malley said BlueScope expected to remain in the red during the first half of 2009-10 but was well placed to take advantage of any recovery in the global market.
"We are encouraged by the improvement in demand in some markets and by movement in steel prices globally," he said.
"However, the improvement in demand is coming off a low base and we remain cautious on the outlook and are currently expecting to deliver a reported small net loss after tax in the first half of 2009-10."
He said the steel market was yet to see the full effect of government stimulus measures in Australia and the United States, although China's massive four-trillion-yuan (585 billion dollars) package was beginning to flow through.
BlueScope shares were down 11 cents or 3.33 percent at 3.19 dollars by noon in a lower overall market.
Source: AFP Asian Edition