Profit warning from Angang Steel

Profit warning from Angang Steel

16.04.2012 Peking – Angang Steel has slipped in the first quarter into a loss. The stock posted after this reporting duties.

The Chinese steel company Angang Steel expects to, From January to late March, a net loss of 1,888 Yuan Milliarden (299 Million U.S. dollars) generated to have. As a reason for this poor result was the significant decline in prices quoted for steel products. Last year the company had in the same period with a net profit of 71 Billion yuan recorded.

Managing Director Chen Ming, however, assumes, that the price of steel has now stabilized: Compared with December, he was already back to 3 Percent increase. In April, the price could remain on the same level or slightly down. Although the price of the raw material iron ore as early as 50 U.S. dollar 140 U.S. dollar has declined, This is the same high level of costs, according to Chen unreasonable.

Further expansion of production capacity

In late March, the company announced, that capital expenditure is expected this year to 50 Percent 3,6 Billion yuan will be reduced. Last year, the production capacity of Angang Steel totaled 19,16 Million tons of steel. This year, the production capacity by 9 Percent, respectively 1,7 to 1,8 Million tons will be increased.

Currently, the price of Angang Steel Co Ltd at the Hong Kong Stock Exchange 3,8 Percent in the red on 5,25 Hongkong-Dollar.
(www.emfis.de)

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