(Shenzhen Daily)
Updated: 2007-08-10 09:11

Wuhan Iron & Steel Co, China's third-biggest steelmaker by market value, said Thursday first-half profit almost tripled as steel prices rose and output increased.

Net income rose to 3.4 billion yuan (US$449 million), or 0.44 yuan a share, from a revised 1.26 billion yuan, or 0.16 yuan a share, a year earlier, the Shanghai-listed company said, using local accounting standards. Sales rose 38 percent to 26 billion yuan.

Steel prices in China, the world's biggest maker of the metal, recovered this year after producers such as Baoshan Iron & Steel Co. boosted exports, and the government tightened loans to curb capacity growth. The price gains more than offset increases in the cost of raw materials such as iron ore and fuel.

Wuhan Steel is one of my favorites, said Lu Yizhen, who helps manage about US$640 million at Citic-Prudential Fund Management Co in Shanghai. "Output is increasing steadily and has better product structure."

Wuhan Steel's stock was suspended from trade Thursday pending an announcement to deny a domestic newspaper report of a dividend-payout plan, Wan Yi, the company's board secretary, said.

The newspaper had said the company is going to pay 3 yuan for every 10 shares held from first-half profit, Wan said. The report in the unnamed paper was incorrect, he said.

The company is the first of China’s larger steelmakers to announce first-half results this year. Baoshan Steel, China's biggest, will report on the night of Aug. 29, and Shanxi Taigang Stainless Steel Co the fourth-biggest by value, is scheduled to announce earnings Aug. 27.