Vietnam Italy Steel: Determined restructuring, set a target of 36 billion profit in 2016

Vietnam Italy Steel Joint Stock Company (Visco - stocks VIS) has released documents will presented at the annual shareholder meeting in 2016 held in the next 24/3.

 

Looking back on 2015 business results, the Board said that the economic growth in 2015 has reached its highest level in 8 years, is a strong signal to help the economy recover. Company revenue for the year reached its highest level ever. However, paradoxically, reported losses in 2015 Visco 52 billion. The cause, in part because the company has a provision of 26 billion for doubtful accounts receivable and provision for impairment of inventories.

 

Entering 2016, Visco said steel prices will tend to decrease due to reduced raw material prices, abundant supply, the pressure on the exchange rate will be stronger than in 2015. However, the situation of domestic economic growth is also the driving force of domestic consumption. Therefore, the Board of Directors also set the target company turnover in 2016 is estimated at 2,480 billion and profit before tax is estimated at 36 billion. billet production output of 260,000 tons; rolled steel output 275,000 tons; Steel consumption 275,000 tons.

 

To achieve the set target, the Board of Directors determines the company to restructure powerful, actively strengthen and enhance the brand, reviewing and restructuring the workforce and indirect manufacturing apparatus in the Mouse. For the production, accelerate the purchase of materials to reduce inventory levels, increase the import of steel billets production used to reduce the cost of civil rolled steel.

 

For branches in Hai Phong, studied the composition of alloy steel ingots for steel production costs and reduce the amount of steel short and long.

 

Currently, due to the preparation of materials from discarded embryos too long to Vietnam Italy Steel are losing their grip flexibility when steel prices in the market continued to decline, inventories are large, slow capital turnover. Identify existing problems and difficulties to find corrective measures in 2016 is the task that the company is looking for Board resolution options.