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Vanadium steel maker forecasts $205m loss in 2009

(Xinhua)
Updated: 2010-01-29 16:06

Panzhihua New Steel and Vanadium Co, the world's third largest producer of vanadium steel used in high-speed railroads, Friday said it expected losses of some 1.4 billion yuan ($205 million) in 2009.

In a statement to the Shenzhen Stock Exchange, the company said it suffered losses of more than 454 million yuan in 2008. Earning-per-share fell to minus 0.24 yuan in 2009, from minus 0.14 yuan in 2008.

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By reporting losses for two consecutive years, the company, which was listed in 1996, is set to be marked with an ST prefix by the Shenzhen Stock Exchange, which means a delisting warning for its investors.

Panzhihua New Steel and Vanadium, based in southwest China's Sichuan province, which was hit by a massive earthquake on May 12 of 2008, said losses in 2009 were attributable to post-quake reconstruction of its subsidiaries in quake-ravaged Chengdu and Jiangyou cities.

Falling prices of such products as steel, vanadium and titanium owning to the economic downturn also contributed to losses in 2009, it added.

Panzhihua New Steel and Vanadium currently has a market value of almost 46.5 billion yuan.