China's Baoshan sees 40% net profit fall for fiscal 2013
TORU SUGAWARA, Nikkei staff writer
SHANGHAI -- China's Baoshan Iron & Steel saw a major slide in its bottom line for fiscal 2013.
The unit of China's state-owned Baosteel Group announced Saturday a net profit of 5.81 billion yuan ($936 million) for the year ending December, a decline of 42.3% on the year. The difference is due largely to the hefty capital gains Baoshan made in fiscal 2012 from selling its stainless and special steel business to its parent.
Operating profit grew 2.5 times on the year to 7.684 billion yuan thanks to brisk sales of value-added products, such as automotive steel, and to cost-cutting efforts.
However, sales slid 0.8% to about 190 billion yuan due to China's economic slowdown and price declines stemming from overcapacity.