Guangzhou Iron and Steel realized net profit 22.01 million Yuan for the first quarter
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Date:
2008-5-10
Source: China Iron and Steel Association
During the first three months of 2008, Guangzhou Iron and Steel Company Ltd realized operating income 1.888 billion Yuan, increasing by 46.73% from that of the same period in 2007; and the operating costs totaled 1.868 billion Yuan, up 46.33%; the main causes were the rises in products sale prices and the production costs, up 41.18% and 39.34% respectively from those a year ago.
The company realized a net profit of 22.01 million Yuan for quarter one, increasing by 49.13% from that of the corresponding period in 2007, and the reasons include; first, the company managed to secure the raw material stocks when facing snow disaster, and therefore maintained full scale production; second, the costs management helped to reduce the production costs; third, the market for construction steel kept active through the first quarter, and the sale prices increased considerably. Meanwhile, the company had a clear picture of the prices trend for raw materials and increased the stock in the last quarter of 2007, and therefore had a relatively lower the raw materials cost for the reporting period.