Bloomberg the Company & Products

Bloomberg Anywhere Login

Bloomberg

Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the world.

Company

Financial Products

Enterprise Products

Media

Customer Support

  • Americas

    +1 212 318 2000

  • Europe, Middle East, & Africa

    +44 20 7330 7500

  • Asia Pacific

    +65 6212 1000

Communications

Industry Products

Media Services

Follow Us

Breaking News

Polls Close in Greek Referendum

Maanshan Steel to Sell Assets to Parent: Forecasts 9-Month Loss

Aug. 23 (Bloomberg) -- Maanshan Iron & Steel Co., Hong Kong’s second-largest listed steelmaker, said it will sell stakes in some assets to its parent for 3.84 billion yuan ($627 million) and forecast a nine-month loss.

The sale of port, international trading, transportation and machinery units and land, will “help boost liquidity and reduce financial costs,” the Maanshan, Anhui province-based company said in a statement. The company expects to book a 918.2 million yuan gain from the sale, it said.

Maanshan yesterday reported a narrowed first-half loss of 332.8 million yuan, compared with a loss of 1.89 billion yuan a year ago. The steelmaker is on course for its second annual loss as industry overcapacity weighs on prices.

The first-half result “was better than our expectation,” Barclays Plc analyst Ephrem Ravi said in an e-mailed note today.

Maanshan Steel jumped 3.9 percent to HK$2.16 at 10:36 a.m. in Hong Kong, set for the highest since March 13. Earlier it advanced as much as 7.2 percent.

The company will incur losses for the first nine months of this year as the cost of raw materials increased faster than steel prices, it said in a separate statement, without elaborating. Maanshan may have a loss of 390.6 million yuan in 2013, according to the average of 16 analyst estimates compiled by Bloomberg.

To contact Bloomberg News staff for this story: Helen Yuan in Shanghai at hyuan@bloomberg.net

To contact the editor responsible for this story: Jason Rogers at jrogers73@bloomberg.net

Please upgrade your Browser

Your browser is out-of-date. Please download one of these excellent browsers:

Chrome, Firefox, Safari, Opera or Internet Explorer.