Shougang reports big drop in net profit for 2011

Monday, 16 April 2012 14:56:21 (GMT+2)

According to its financial report for 2011, Chinese steel group Shougang Corporation achieved a total operating revenue of RMB 12.51 billion ($1.98 billion) in the given year, declining by 55.15 percent compared to 2010. Meanwhile, net profit in 2011 totaled RMB 11.78 million ($1.86 million), down 96.93 percent year on year. In the given year, Shougang's earnings per share (EPS) was RMB 0.004 ($0.0006).

Shougang stated that the big decrease in its net profit in 2011 was mainly attributable to the shrinkage of its production caused by the shutdown of its steel plant in Shijingshan at the end of 2010.

In addition, Shougang also released its estimated financial results for the first quarter of 2012. Accordingly, for the first quarter the company estimates a net loss of RMB 140-160 million ($22.22-25.39 million), as compared to a net profit of RMB 31.89 million ($5.06 million) in the first quarter of 2011. The downtrend of steel prices has contributed to the negative result estimates.

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