18 Aug 2009 08:58

Angang Steel reports net loss of $228 mln in H1

Shanghai. August 18. INTERFAX-CHINA - Angang Steel Co. Ltd., a subsidiary of Liaoning Province-based Anshan Iron and Steel Group, reported a net loss of RMB 1.56 billion ($228.27 million) for the first half of the year, according to a company announcement on Aug. 18.

Angang Steel registered a net profit of RMB 5.98 billion ($875.05 million) in the corresponding period of 2008.

From January to June, the company's revenue decreased by 25.21 percent compared with the same period last year to RMB 30.04 billion ($4.40 billion). Loss per share for the first half was RMB 0.216 ($0.03).

Angang Steel attributed the net loss and the drop in revenue to lower steel product prices resulting from the global economic downturn.

Despite weak steel product prices, the company's production volumes increased during the six-month period, with pig iron, crude steel and steel product output up by 14.34 percent, 11.18 percent, and 10.78 percent year-on-year respectively, to 9.27 million tons, 9.10 million tons and 8.52 million tons.

In the first half of 2009, the company adopted a series of measures in response to the global economic slump, including maintaining a moderate scale of operations and minimizing costs.

Angang Steel said it will continue to focus on cost reduction and efficiency, and further optimize its product mix in the second half of the year.

The company estimates that its net profit for the whole of 2009 will plummet by between 50 percent and 100 percent from 2008 to a maximum of RMB 4.13 billion ($604.34 million).

Angang Steel's share price stood at RMB 13.85 ($2.03) at 11:30 a.m. Beijing time on the Shenzhen Stock Exchange, down 0.36 percent from the previous trading day, and at HKD 15.08 ($1.95) at 12:30 p.m. on the Hong Kong Stock Exchange, down 1.18 percent from the previous trading day.