Baosteel profits jump 41% in Q3

Monday, 31 October 2005 11:08:08 (GMT+3)   |  
       

Baosteel profits jump 41% in Q3

China's largest steelmaker, Baoshan Iron & Steel Corporation (Baosteel), saw a 41 percent year-on-year increase in third quarter net profit thanks to the steel plant acquisitions from its parent company earlier in the year. The company's net profit increased from RMB 2.3 billion ($284.5 million) in the third quarter of 2004 to RMB 3.3 billion ($408 million) in the third quarter of this year. Sales of the company increased 137 percent year on year to RMB 34.5 billion ($4.27 million). However, the company's profit dropped from the RMB 4.1 billion ($507.2million) of the previous quarter due to excessive domestic supply, a sluggish market and dropping prices. In April, Baosteel bought steel plants from its parent company, Baoshan Iron & Steel Group. The acquisitions expanded Baosteel's capacity 56 percent. Baosteel has cut its prices by approximately 10 percent for the fourth quarter. Therefore, profits may fall further.

Similar articles

China’s HDG market sees low inventories in some regions

26 Nov | Flats and Slab

CISA seeks further export tax rebates for steel products

29 Apr | Steel News

Big Chinese steelmakers brace themselves for further losses

26 Nov | Steel News

CISA convenes meeting with mills to discuss current situation in steel markets

21 Oct | Steel News

CISA reviews performance of China’s steel sector in 2007

05 Feb | Steel News

Baosteel invests in expanding steel wheel sector

03 Jan | Steel News

Supply to grow rapidly in China's oriented electrical steel market

31 Oct | Steel News

China needs to develop shipbuilding plate to satisfy changing demand

26 Oct | Steel News

2nd half of 2007 - China's steel profits may see drop

31 Aug | Steel News

General Steel announces record Q2 results

21 Aug | Steel News