Oriental Morning Post reported that Shaoguan Iron & Steel Co Ltd released the un audited Q3 report that the company realized CNY 3.387 billion of revenue down by 29.09%YoY and CNY 257 million of profit up by 516.49%YoY with earning per share at CNY 0.1539.

According to the report, Shaoguan Steel made great turning from loss into profit in the quarter, attributing to the largely swelling earning owing to price rebound and cost decrease in Q3.

During January to September 2009, the company posted CNY 39.45 million of profits down by 91.87%YoY with EPS at CNY 0.0236. The report showed that the striking YoY profit decline in January to September was mainly caused by the decreasing margin in its main businesses.

However in different seasons, Shaoguan Steel presented improving performances in EPS since Q4 2008 in detail, negative CNY 1.26per share in Q4 2008, negative CNY 1.25 per share in Q1 2009, negative CNY 0.03 per share in Q2, 2009, CNY 0.04 per share in June and CNY 0.06 per share in July.

The improving situation weakened in August and continued to be bad along with the falling steel price. Analysts pointed out the fixed investment in downstream industry remained high the investment in real estate kept growing; the steel demand from infrastructure construction stayed strong. Those mentioned downstream industries would support steel industry’s further upturn.

(Sourced from Oriental Morning Post)