The Overall Pressure on The Steel Industry Baosteel’s Net Profit Fell 44% In The First Three Quarters

The Overall Pressure on The Steel Industry Baosteel's Net Profit Fell 44% In The First Three Quarters

Under the background of slowing domestic macroeconomic growth, the steel industry is under pressure.

On the evening of October 25, Baosteel Co., Ltd. (600019) disclosed the third quarterly report. In the first three quarters of this year, Baosteel Co., Ltd. realized a total operating income of 216.876 billion yuan, down 3.75% year-on-year; net profit was 8.874 billion yuan, down 43.65% year-on-year; cash generated from operating activities The net flow was 19.595 billion yuan, down 46.68% year-on-year; basic earnings per share was 0.4 yuan.

Net profit fell 44% in the first three quarters

In the third quarter, Baosteel Co., Ltd. realized a total operating income of 76.1 billion yuan, compared with 769 billion yuan in the same period last year, net profit of 2.922 billion yuan, compared with 6.281 billion yuan in the same period last year. In the first three quarters, Baosteel’s net profit was 8.874 billion yuan, down 43.65% year-on-year.

The company said that the external market uncertainty in the third quarter has intensified, and trade friction has had an impact. The profit rate of domestic large and medium-sized steel enterprises has continued to fall. The prices of steel products generally showed a downward trend. In the third quarter, the domestic steel price index and the international steel price index fell by 3.3% and 4.9% respectively. The ore price continued to rise. In the third quarter, the 62% iron ore index rose by 1.9% from the second quarter. The price of coal coke fluctuated at a high level; the downstream auto plate market narrowed year-on-year, but it still continued to grow negatively.

In this context, in the third quarter, Baosteel Co., Ltd. timely grasped the market changes, dynamically adjusted the production rhythm, and increased the cost reduction work. The accumulated cost in the first three quarters was reduced by 4.77 billion yuan, exceeding the annual target; at the same time, accelerating the change and improving efficiency, from value Maximize the departure, promote management change, and create the ultimate management efficiency, organizational efficiency and process efficiency. In the first three quarters, the labor efficiency of formal employees increased by 5.3%, of which managers increased by 7.1%, and business performance reached expectations.

In the third quarter, Baosteel completed an iron output of 11.796 million tons, a steel output of 12.437 million tons, a sales volume of 12.106 million tons of commodity billets, and a consolidated profit of 3.66 billion yuan. In the first three quarters, the accumulated iron output was 34.623 million tons, the steel output was 36.723 million tons, the sales volume of commodity billets was 35.458 million tons, and the consolidated profit was 11.97 billion yuan.


Post time: Oct-28-2019