Baosteel posts unexpected fall in 2007 net profit

Baoshan Iron and Steel Co<600019>, China's leading steel manufacturer, posts a 3% fall in its net profit last year due to the weak stainless steel market following a plunge in nickel prices, according to the company's filing with the Shanghai Stock Exchange.

Its net profit decreased to RMB 12.72 billion from RMB 13.08 billion in 2006, and earnings per share were RMB 0.73. Operating revenue also declined slightly to RMB 19.31 billion.

Though its turnover surged 18% to RMB 191.56 billion in 2007, the stainless products business reported great loss because of the price slump.

Analysts from Reuters forecasted earlier that the company's net profit could reach as high as RMB 14.01 billion.

The company plans to sell 24.19 million tons of steel products this year, aiming at achieving a turnover of RMB 200 billion. Baosteel sold 22.6 million tons of steel products last year.