SHANGHAI, Oct. 22 -- Jiangxi Copper Co., China's biggest producer of the metal, said third-quarter profit declined 46 percent because of lower prices.
Net income dropped to 560.9 million yuan ($82 million), or 0.16 yuan a share, from a revised 1.04 billion yuan, or 0.34 yuan, a year earlier, the Guixi, Jiangxi province-based company said today in a statement to the Shanghai stock exchange. Sales dropped to 13.1 billion yuan from 15.3 billion yuan.
Copper prices fell 22 percent from a year earlier because the global recession crimped demand from makers of pipes and power cables. China, the world's biggest producer and consumer of the metal, has increased lending and pushed a 4 trillion yuan stimulus spending plan to revive manufacturing demand.
Jiangxi Copper more than tripled in Hong Kong trading this year, outperforming the 55 percent gain on the benchmark Hang Seng Index. The stock gained 0.2 percent to HK$18.90 in Hong Kong today. In Shanghai trading, it fell 0.8 percent to close at 41.41 yuan.
Nine-month profit fell to 1.76 billion yuan from 4.12 billion yuan, Jiangxi Copper said today in the statement.
Copper prices in Shanghai averaged 46,018 yuan a metric ton in the third quarter of this year, compared with 59,015 yuan a year earlier. Still, prices in London have doubled this year as China imported record amounts of the metal for stockpiling and to fuel its stimulus package.
Jiangxi Copper may boost production by 14 percent this year to 800,000 tons, reaching its output target, after the availability of scrap improved, Chief Financial Officer Gan Chengjiu said on Sept. 21. China replies on imports for most of its scrap needs.