Shuanghui H1 net profit plunges
Updated: 2011-08-19 14:10
China's Henan Shuanghui Investment & Development Co Ltd, the country's top meat processor, posted a 85 percent slump in its first-half net profit and has forecast its third-quarter earnings to fall as much as 44 percent, Reuters reported.
Shuanghui, which was embroiled in a tainted meat scandal that forced the closure of 16 pig farms in March, blamed higher raw materials costs and weak margins for its poor performance, adding that the contaminated meat scandal had hit sales and caused its factories to run below optimum capacity.
The firm reported a net loss of 189 million yuan ($29.6 million) in the second quarter, which in turn dragged its earnings in the first half to 75.98 million yuan.
It estimated its third-quarter net profit to be between 174 million-224 million yuan, down between 28-44 percent from a year ago.
Shuanghui said it would focus on cutting costs, winning back consumer confidence and raising production to improve profits in the coming quarters.
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