On October 25, Chinese steelmaker Wuhan Iron and Steel Corporation (WISCO) released its Q3 2009 report, showing a 75.8 percent drop in net profit under the influence of reduced sales and decreased steel prices.
In the third quarter of 2009, WISCO achieved RMB 547 million ($80.09 million) in net profit, down 75.8 percent year on year, while its net profit from January to September came to RMB 1.053 billion ($154.18 million), down 85.31 percent. Earnings per share for the first three quarters were RMB 0.134 ($0.02), down 75.5 percent compared with the same period last year.
Nevertheless, the company registered an investment income of RMB 232 million ($33.97 million) in the third quarter, while it suffered an investment loss of RMB 62.33 million ($9.13 million) during the same period last year, which has alleviated the pressure of its weak business result to a certain extent.
Furthermore, WISCO also estimates that its net profit for the whole year of 2009 will be down by more than 50 percent year on year as the global economy fails to see any real recovery and as uncertainties still remain in China's steel industry.