Saturday, June 16, 2012

Taiwan's China Steel Sees 2Q Net Loss; May Turn Profitable in 3Q

KAOHSIUNG, Taiwan--China Steel Corp. (2002.TW), Taiwan's largest steel producer by revenue, expects another quarterly net loss for the three months ending June 30 before possibly turning profitable in the third quarter, Chairman Tsou Jo-chi said Friday.

China Steel posted a net loss of NT$712.2 million in the three months ended March 31. The company said earlier that falling worldwide demand and high feedstock costs are behind the losses.

Mr. Tsou didn't elaborate on his earnings forecast.

Mr. Tsou also told shareholders at the company's annual meeting that it will continue to invest in more iron-ore and coal mines abroad to further lower feedstock expenses. It is on track to reach its target of cutting annual operating costs by US$140 million this year, he added.

Its latest overseas acquisition, China Steel, in late April agreed to buy a 2.5% stake in the Roy Hill iron-ore project in Western Australia state from South Korea's Posco for A$305.2 million.

Write to Fanny Liu at fanny.liu@dowjones.com

Copyright ? 2012 Dow Jones Newswires

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