Major Chinese industrial companies’ profits drop
March 27th, 2012 - 4:12 pm ICT by IANSBeijing, March 27 (IANS) Profits for Chinese chemical producers, automakers and other major industrial companies fell 5.2 percent in the first two months of 2012 from the same period a year earlier, China’s statistical authority said Tuesday.
Total profits for the largest industrial companies, or those with annual revenues above 20 million yuan ($3.17 million), stood at 606 billion yuan during the first two months, the National Bureau of Statistics said in a statement on its website.
The data highlighted the impact of the sluggish global economic recovery on Chinese companies, especially state-owned enterprises, as exports have slowed due to waning external demand, reported Xinhua.
The data also represents a significant drop from a 34.3-percent increase registered in the first two months of 2011.
State-owned and state-controlled enterprises saw their profits fall 19.7 percent from one year earlier to 179.1 billion yuan, while private companies’ profits grew 24.4 percent during the same period.
Out of 41 industry categories, 23 reported a year-on-year increase in profits, while 14 saw profits fall and one broke even.
The ferrous metal sector was hit the hardest, with profits slumping by 94 percent. The computer, telecommunications and electronics manufacturing industries suffered a 40.8-percent drop in profits.
Oil refining, coking and nuclear fuel processing companies also saw profits turn to losses, according to the statement.
Profits in the power generation sector, however, increased by 21.1percent. The country’s oil and gas exploration industry witnessed a 15.5-percent rise in profits.
“The data is within our expectations and will have a marginal impact on the stock market,” said Wang Xiaomin, chief financial planner at Sinolink Securities.
The benchmark Shanghai Composite Index rose 0.2 percent to end at 2,355.29 points during Tuesday’s morning trading.
The world’s second-largest economy is facing an economic challenge in the form of slackened exports. The nation reported a trade deficit of $31.49 billion in February, the largest monthly trade deficit in more than a decade.
China’s economic growth slowed to 9.2 percent in 2011, down from 10.4 percent in the previous year. Authorities are targeting a 7.5-percent increase for this year’s gross domestic product.
- Profits of China's major companies slide (Lead) - Jun 29, 2012
- China's industrial profit goes up in 2011 (Lead) - Feb 03, 2012
- China's industrial profit goes up in 2011 - Feb 03, 2012
- China's slowdown hurts corporate profits - Aug 19, 2012
- China's major companies' profits slide - Jun 29, 2012
- China posts biggest trade deficit in decade - Mar 11, 2012
- China's largest gold miner posts gloomy results - Aug 11, 2012
- Chinese shipbuilders in choppy waters - Apr 30, 2012
- Industrial profits growth slows in China - Dec 27, 2011
- China unveils list of top 500 companies - Sep 04, 2011
- Chinese vehicle manufacturer's 2011 profits slump - Mar 02, 2012
- Chinese banks post record profits - Feb 19, 2012
- Chinese aviation industry profits shrink - May 08, 2012
- Japan's exports fell in October - Nov 21, 2011
- China's PPI drop highlights economy's plight (Lead) - Aug 09, 2012
Tags: automakers, bureau of statistics, challe, chemical producers, chinese companies, computer telecommunications, electronics manufacturing, ferrous metal, gas exploration industry, industry categories, manufacturing industries, marginal impact, national bureau of statistics, nuclear fuel, oil and gas exploration, oil refining, shanghai composite index, state owned enterprises, statistical authority, xinhua