Nanjing Steel expects loss for a second year running

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It estimates a net loss of 618.36 million yuan ($100.43 million) for last year, compared with a loss of 570.27 million yuan ($92.62 million) in 2012, it announced on Saturday March 22.

Nanjing Steel forecasts operating revenue to hit 26.82 billion yuan ($4.36 billion), 16.3% lower than the 32.03 billion yuan ($5.2 billion) recorded in 2012.

“In 2013, Nanjing Steel dismantled certain outdated facilities, which resulted in significant drops in revenue,” the company said in the announcement.

Nanjing Steel suspended production at five of its blast furnaces in the first quarter of 2013 as part of its strategic planning, a source at the mill’s securities department told Steel First.

During the first three quarters of the year, it posted a net loss of 106.45 million yuan ($17.29 million), which means it incurred an additional 511.91 million yuan ($83.14 million) of net loss in the fourth quarter, based on its estimate for the whole of 2013.

“The significantly lower steel prices and price drops of China Minsheng Bank shares that Nanjing Steel invested in were also attributable to the increased net loss,” he added.

The company plans to increase crude steel output from 5-6 million tonnes in 2013 to 8 million tonnes in 2014, and aims to turn return its core steelmaking business to the black in 2014.

Nanjing Steel is set to announce its annual report on April 26.