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China Zhongwang Q3 profit at highest for a quarter in 5 yrs
October 31, 2017 / 9:31 AM / 23 days ago

China Zhongwang Q3 profit at highest for a quarter in 5 yrs

BEIJING, Oct 31 (Reuters) - China Zhongwang Holdings Ltd on Tuesday said its third-quarter net profit rose by 1.4 percent year-on-year on higher aluminium prices, giving the company its most profitable quarter in at least five years.

Zhongwang, the world’s second-largest aluminium extruder, posted third-quarter net income of 1.08 billion yuan ($163 million), up from 1.07 billion yuan a year ago. That is its biggest quarterly profit in Reuters records back to 2012.

The company, based in China’s northeastern Liaoning province, said third-quarter revenue totalled 5.39 billion yuan, up 12.5 percent from 4.791 billion yuan last year.

The revenue increase came despite a 6.9 percent fall in sales volumes to 204,170 tonnes, and was Zhongwang’s highest quarterly revenue since the second quarter of 2013. Shanghai aluminium futures are up 21 percent year-to-date.

In its first-half report in August, Zhongwang said its sales to the U.S. had been declining this year due to trade friction between Washington and Beijing over China’s aluminium product exports.

In July, the U.S. Commerce Department made a final ruling that Zhongwang had been circumventing U.S. duties on shipments of 5050 aluminium alloy, although the company pointed out at the time that it had stopped making such products in 2015.

Zhongwang’s chairman Liu Zhongtian has since been accused of smuggling by the U.S. Department of Justice.

$1 = 6.6257 Chinese yuan Reporting by Tom Daly; Editing by Tom Hogue

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