Taiwan's CSC Pretax Profits Hit 3-year High of NT$2.966 Bn. in Sept.
2014/10/29 | By Steve ChuangTaiwan-based China Steel Corp. (CSC), the biggest steelmaker on the island by size, scored pretax profits of NT$2.966 billion (US$98.86 million) for September, up 3% month-on-month (MoM) and 32.64% year-on-year as a three-year high, according to its latest financial report.
In addition to strong sales of steels, the banner profits are also attributable to a considerable claim settlement of NT$170 million (US$5.66 million) for a vessel owned by its subsidiary, as well as a return of US$7 million on investment in iron ore operations by AMMC (ArcelorMittal Mines Canada), the persistent price drops of iron ore to around US$80 per tonne.
CSC's consolidated revenue for September totaled NT$30.857 billion (US$1.028 billion), edging up 0.3% MoM, with operating profits of NT$2.687 billion (US$89.56 million), down 16%.
Mainly fueled by brisk demand among downstream re-rolling mills, steel pipe makers and steel shearing service providers, CSC indicated sales of carbon steels exceeded 830,000 tonnes in the month, compared to some 828,000 tonnes a month earlier, hence driving overall performance.
For the first nine months of this year, its cumulative pretax profits totaled NT$20.265 billion (US$675.5 million), or NT$1.31 per share, soaring 12.33% YoY, with aggregate sales of carbon steels of 7.27 million tonnes, 65% of which realized in the domestic market.
CSC's chairman, J.C. Tsou, is quite optimistic about outlook, saying earlier that investments in securing stable, economical supply of raw materials has raised its overall self-manufacture percentage above 11% and is very likely to reach the objective of 30% in the short term, to achieve better profits and performance.
Institutional investors said with CSC's operational efficiency being increasingly improving along with raw material costs steadily decreasing, its 2014 pretax profits is expected to hit NT$28 billion (US$933.33), or NT$1.81 per share. (SC)
| CSC's Performance by Quarter
| ||||
| Period
| Q4, 2013
| Q1, 2014
| Q2, 2014
| Q3, 2014
|
| Revenue
| NT$87.413 Bn.
| NT$92.416 Bn.
| NT$92.162 Bn.
| NT$92.290 Bn.
|
| Pretax Profits
| NT$5.170 Bn.
| NT$5.073 Bn.
| NT$6.621 Bn.
| NT$8.572 Bn.
|