Prosperity Minerals cuts full-year guidance

Prosperity Minerals cuts full-year guidance
Published: 20 October 2008

Prosperity Minerals Holdings Ltd said Monday full-year earnings will be substantially below market expectations as slowing growth in China cuts demand for cement and iron.

The company, which owns a cement factory and iron ore trading business in China, said the demand for cement and iron ore in China is expected to weaken during the second half.

Chinese steelmakers have cut production by 20% as demand falls, while new residential and commerical property projects are being cancelled or postponed as the economy sours, it said.

As a result, it expects full-year results will be substantially below current market expectations, PMHL said, although it didn’t specify what those expectations were.