Taiwanese steelmaker
China Steel Corporation has announced a 67 percent decline for its fourth-quarter net income due to the price cuts and increased
production in
China.
The company's net income fell from NT$14.7 billion a year ago to NT$4.9 billion (around $151 million) in the fourth quarter of 2005. Sales dropped 12 percent to NT$41.2 billion.
China Steel cut prices by about 20 percent in the last quarter of 2005 and the first quarter of 2006 due to the increasing
production in
China. The Taiwanese steelmaker sells about 10 percent of its products to
China.
China Steel also reported that the company's profit fell 1.9 percent to NT$50.6 billion in 2005. This was the first decline since 2001.
Sales for 2005 rose 11 percent year on year to NT$186 billion in 2005.