Wed, Sep 11, 2013 - Page 13 News List

China Steel posts slightly lower monthly profits

By Camaron Kao  /  Staff reporter

China Steel Corp (CSC, 中鋼), the nation’s biggest steelmaker, yesterday posted a 1 percent decline in pretax profits because of decreased investment income from subsidiaries.

Pre-tax profits shrank to NT$1.76 billion (US$59.47 million) last month, compared with NT$1.83 billion in July, according to the company’s filing to the Taiwan Stock Exchange.

The figure was more than double the NT$712 million in pre-tax profit it made in August last year on a unconsolidated basis, according to a separate filing by the company.

However, operating profit soared 20 percent to NT$1.98 billion last month, from NT$1.65 billion in July, because of a decline in raw material costs, China Steel said.

“We started using lower-priced coal we purchased in the second quarter,” China Steel vice president Steve Lee (李慶超) said by telephone yesterday.

Last month, the company registered revenue of NT$29.1 billion, up 2.9 percent from NT$28.29 billion a year ago and down 1.19 percent from NT$29.45 billion a month ago, according to the filing.

Lee attributed higher revenue last month to an increase in shipments to 754,067 tonnes last month, from 716,000 tonnes in the same month of last year.

The shipment growth offset a decline in average steel price last month to NT$2,000 per tonne, he said.

From January through last month, the company posted revenue of NT$231.71 billion, down 7.17 percent from the NT$249.59 billion posted a year earlier, the filing said.

Yuanta Securities Co (元大證券) forecast China Steel would post a 30.2 percent quarter-on-quarter decline in net profit to NT$3.41 billion this quarter, from NT$4.42 billion last quarter because of rising prices of iron ores, according to its report issued yesterday.

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