BAD COMBINATION:Low demand in China weighed down the company’s earnings, while weak profitability in overseas factories eroded the already thin profit margins
Date: Nov 14, 2015
By: Lisa Wang / Staff reporter
China Steel Corp (CSC, 中鋼), the nation’s biggest steelmaker, yesterday reported its first monthly operating losses in about three-and-half years, as oversupply drove down prices.
The company, which is based in Kaohsiung’s Siaogang District (小港), posted operating losses of NT$6 million (US$182,326) for last month, reversing an operating profit of NT$164 million in September.
CSC blamed a global economic slump and overcapacity in China for its weak financial performance. The company’s last reported operating loss was in February 2012, when it posted pre-tax losses of NT$572 million, the company said.
CSC said its pre-tax profits fell 85 percent to NT$109 million last month, compared with NT$725 million in the previous month. [FULL STORY]