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FINANCIAL NEWS
Jordan Steel H1 profits plunge 65%
31 Jul 2010
(MENAFN) Jordan’s top steel producer Jordan Steel posted a 65 percent drop in first-half net profit to $2.8 million, according to the company’s financial statements.
For the second quarter, Jordan Steel posted a loss of $652,866 compared with a $4.22 million profit a year before, the statement obtained by Reuters showed.
Industry analysts say a depressed real estate sector and weak steel prices, along with dumping of cheaper UAE imports, were to blame for the sharp drop in profitability of the kingdom’s largest steel producer, with a market share of at least 30 per cent.
Jordan Steel expects to finish an expansion plan by the end of the year that will raise its production capacity to 360,000 tons annually from 240,000 tons.
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