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    Business / Companies

    Chinese steel maker lowers profit goal

    By Du Juan (chinadaily.com.cn) Updated: 2012-07-19 15:32

    Wuhan Iron and Steel Group Co cut its profit goal for the entire year from 3 billion yuan ($476 million) to 1.6 billion yuan on Wednesday amid a slowdown in the economy and gloomy prospects for the steel industry.

    Deng Qilin, general manager of the company, said Wuhan Iron and Steel made the adjustment after considering how the industry is likely to fare in the second half of the year.

    The company has not released official numbers for the first half of 2012 but has said it expects to have made 98.9 billion yuan ($15.5 billion) in revenue and 1.38 billion yuan in profit during that period. It also expects its profits to have increased by 14 percent year-on-year.

    The figures showed that downstream businesses in the steel industry have contributed to an oversupply of steel in the market.

    "We have to ensure that half of our steel products are profitable and continue to make efforts to increase the company's profits," Deng said.

    He said the company will work to develop resources overseas.

    dujuan@chinadaily.com.cn

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