On April 20, Chinese steelmaker Wuhan Iron and Steel Corporation (WISCO) released its 2008 annual report and Q1 2009 report, showing sharp drops in net profit for both periods in question. Meanwhile, the company has also estimated that its net profit for the first half of 2009 will fall at least 50 percent year on year.
In 2008, WISCO registered sales revenues of RMB 73.339 billion ($10.74 billion), up 35.41 percent year on year. Meanwhile, the company's net profit for the year in question reached RMB 5.189 billion ($760 million), down about 20 percent compared with the previous year.
In the first quarter of 2009, WISCO achieved RMB 10.913 billion ($1.6 billion) in sales revenues, down 30 percent year on year, while its net profit came to RMB 263 million ($39 million), one eighth of the figure for the same period last year.
Furthermore, WISCO has estimated that, under the influence of the financial crisis, its net profit in the first half of 2009 will fall at least 50 percent year on year. Moreover, China's steel industry, still characterized by significant excess capacity, is expected to come under great pressure in 2009. Against this background, in 2009 the company plans to produce 15.84 million mt of pig iron, 16.85 million mt of crude steel, and 14.42 million mt of finished steel.