Hoa Phat profit plunges 60 pct

The company saw revenue rising marginally to VND37.7 trillion.

The steel industry was going through unfavorable conditions and this would be reflected in the earnings reports, said Hoa Phat chairman Tran Dinh Long at the company’s annual general meeting in May.

“When the earnings report for the second quarter is released, shareholders will see how terrible the situation is.”

In the first six months, Hoa Phat’s post-tax profit fell 27 percent year-on-year to VND12.23 trillion.

It targets a profit of VND25-30 trillion this year, down nearly 30 percent from last year.

Vietnamese steelmakers this month brought steel prices down for the eighth time this year with a total decline of nearly 13 percent.

SSI Research said the rising prices of construction materials have delayed infrastructure projects, which could be part of the reason why steel prices have dropped.

Hot-rolled coil prices have dropped by 15-20 percent in China and the U.S. in the last three months due to declining construction and manufacturing activities.