Leading steelmakers in China have released their quarterly results for the first 9-months 2013 which show widely varying results for the period. Those boasting rosy growth earlier have suffered badly compared to the same period a year earlier.
Shagang, the listed arm of China’s largest private steelmaker Shagang Group, reported a net profit of RMB 14.907M (US$2.435M) for the first three quarters this year, 2.5 times greater than that for the same period last year. Shagang attributed the profit surge to higher steel prices this year than last year. But its operational revenue dropped 11.78% year on year to RMB 7.96bn ($1.3bn) in the first three quarters 2013.
Wuhan Iron and Steel (Wusteel) made a net profit of RMB 650.89M ($106.35M) in the first three quarters of this year, up 98.44% from the same period 2012 with earnings per share at RMB 0.064. Wuhan ranked third in output in China behind Hebei Group and Baosteel group in 2012 producing 36.4Mt of crude steel that year.. The company’s operating revenue for the first nine months totalled RMB 66.66bn ($10.89bn), down 0.84% year on year.
Anshan Iron and Steel (Ansteel) earned a net profit of RMB 765M ($125M) in the first three quarters of this year. It incurred a huge loss of RMB 3.17bn ($517.9M) in the same period of last year. The company said it had made efforts to optimise product mix and logistics management, intensify investment on energy-saving technologies and strictly control expenditure since the beginning of 2013, which contributed significantly to its business performance.
Ansteel is now marked as a ‘Special Treatment’ (ST) share after two consecutive years of net losses, which means a high possibility for the firm to get de-listed. It lost RMB 2.146bn ($350.6M) in 2011 and RMB 4.157bn ($679.2M) in 2012.
Shanghai Baoshan Iron and Steel Co. (Baosteel), announced a net profit for the first three quarters of 2013 of RMB 4.64bn ($758.16M), but this was down 56.99% on the same period 2012. Earnings per share were RMB 0.28. According to a filing to the stock exchange, its operating revenue was down 2.42% year on year during the 9-month period to RMB 142.26bn ($23.24bn). Output was 5.16Mt of iron and 5.32Mt of steels in Q3.
Shanxi Taigang Stainless Steel Corp (TISCO) announced a net profit for the first three quarters 2013 down 34.74% year on year to RMB 445M ($72.7M). Its operating revenue during the period was RMB 83bn ($13.56bn), up 7.18% from a year earlier. In the third quarter, the company’s net profit was down 64.63% year on year to RMB 112M ($18.3M).
Source: China Metals e-mail email@example.com