China Precision Steel profits down 61%

China Precision Steel (CPS) have reported a 61% drop in profits in the fourth quarter of the 2009 fiscal year, blaming the rise in the price of raw materials, AP reported. While in June last year CPS' income was US$5.6 million, its net income on June 30 this year was just US$2.2 million, or US$0.05 per share. The company claims that the high cost of raw materials amidst the industry downturn is to blame for the plunge in profits. But CPS chairman Wo Hing Li was upbeat about the future for the Chinese steel industry generally, pointing out that the demand for precision steel products improved during third quarter of the fiscal year.