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British Steel profits melt
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November 16, 1998: 8:30 a.m. ET
Profits down 16 percent, sales fall as company blames falling prices
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LONDON (CNNfn) - British Steel stock plunged almost 7 percent Monday after the company said six-month earnings slid 16 percent and warned it could post a loss for the full year.
The company blamed weak overseas markets for a decline in net profits for the first half of 79 million pounds ($131 million) from 95 million pounds last year. Earnings per share, fully diluted, came in at 3.98 pence, below most analysts' expectations.
T. Hoare analyst Mark Horn said the results were in line with his bearish expectations. "One is aware that steel prices and volumes are falling," he said.
"But this is a company which ...is only starting to address the most basic of problems they need to address," he added.
British Steel chairman and chief executive Sir Brian Moffat admitted it had been a difficult quarter.
"During August and September, selling prices weakened for most steel products, as the adverse effects of the economic crises in the Far East impacted on European and North American markets," he said in a company statement.
Shares were trading at 105.5p, down 7.25p at mid-day in London. 
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British Steel
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