UPDATE 1-General Steel Holdings posts wider Q4 loss

Tue Mar 16, 2010 11:22am EDT

* Q4 net loss $11.1 mln vs loss $9.7 mln year ago

* Q4 revenue rises 73 pct

* Shares down as much as 11 pct

March 16 (Reuters) - General Steel Holdings Inc (GSI.N) posted a wider fourth-quarter loss, hurt by a rise in raw material costs, sending its shares down as much as 11 percent.

In the latest quarter, the Chinese producer of steel products posted a net loss of $11.1 million, or 26 cents a share, compared with a loss of $9.7 million, or 27 cents a share, a year ago.

In December, General Steel offered 5.6 million common shares and warrants to buy up to 2.8 million common shares, in units priced at $4.50 apiece.[ID:nSGE5BN0B9]

Revenue for the quarter rose 73 percent to $451.9 million.

Two analysts on average were looking for a loss of 2 cents a share, before items, on revenue of $454.4 million, according to Thomson Reuters I/B/E/S.

The company said its cost of revenues rose 55 percent to $438.6 million, with the cost of iron ore and coke accounting for about 76 percent of the costs.

Shares of the Beijing-based company fell 11 percent to $3.87 in early trade, but pared some losses to trade down 7 percent at $4.06 Tuesday morning on the New York Stock Exchange. (Reporting by Arundhati Ramanathan in Bangalore; Editing by Maju Samuel)