Minmetals Development reports losses in 2012 net profit

BEIJING - Minmetals Development, a listed unit of China's leading metal producer, said it did not overcome headwinds brought by shrinking demand, forecasting net profit losses in 2012.

The 2012 net profit losses may be 350 million yuan ($55.56 million), according to its forecast report filed with the Shanghai Stock Exchange on Wednesday night.

It means a 165-percent year-on-year drop in 2012, as the firm posted a net profit of 538 million yuan in 2011, with earnings per share at 0.5017 yuan.

The company attributed its weak performance mainly to the sluggish global economy, slowing Chinese economy, shrinking steel sector, deteriorating market environment and increasing management difficulties.

Shares of Minmetals Development opened at 17.03 yuan on Thursday, down 1.50 percent from Wednesday.

Its parent company, China Minmetals Corporation, is the country's largest multinational in the mining, smelting, production, and distribution of basic metals.