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CSC Posts Pretax Profits of NT$2.871 Bn. for Aug.

2014/10/02 | By Steve Chuang

China Steel Corp. (CSC), the biggest steelmaker in Taiwan by size, scored pretax profits of NT$2.871 billion (US$95.7 million) in August, up 5% month-on-month for a single-month high of this year, according to the firm's latest financial report.

The report shows CSC's cumulative pretax profits for the first eight months of the year of  NT$17.3 billion (US$576.66 million), up 9.47% YoY, or NT$1.1 per share.

In August, the firm's shipments reached 1.113 million tonnes, compared to some 1.1 million tonnes in July, hence driving its monthly revenue to NT$30.769 billion (US$1.025 billion).

CSC's chairman, J.C. Tsou, indicated earlier that steel prices in Taiwan may not rise in the remainder of this year, primarily because the global market is still rallying to sustain international prices, but domestic prices are certain to fluctuate slightly in Q4, based on the fact that the firm has seen a steadily influx of orders from downstream manufacturers.

On another front, institutional investors note that CSC's pretax profits have steadily increased month by month so far this year, particularly June through August, during which its single-month pretax profits had continuously surged despite persistent declines in consolidated revenue, to  suggest operating efficiency has significantly improved to effectively drive profits, especially  when international price of iron ore has plummeted.

Institutional investors project the firm's full-year pretax profits to  reach NT$22 billion (US$733.33 million) this year. (SC)

CSC's Consolidated Revenue in 2014 by Month
Month

Consolidated Revenue

YoY Growth Rate

Jan.

 NT$1.637 Bn.

- 15.03%

Feb.

NT$1.301 Bn.

10.10%

Mar.

NT$1.406 Bn.

- 12.20%

Apr.

NT$1.651 Bn.

- 3.03%

May

NT$1.420 Bn.

- 17.79%

Jun.

NT$1.525 Bn.

- 17.35%

Jul.

NT$1.374 Bn.

- 27.90%

Aug.

NT$1.370 Bn.

- 14.51%

Source: Market Observation Post System