Shares in Chilean iron and steel producer CAP fell 2.5 percent to 7,280 pesos on Monday, their lowest level since January 2009, after the company reported earnings below market forecasts due to weak iron ore prices.
Net profit in the first half of 2014 was $46 million, down more than 40 percent from the same period a year ago, the company reported after the market close on Friday.
“The iron ore average selling price was significantly lower than expected, shipped volumes also disappointed our expectations, and steel sales were lower than expected,” said brokers at BICE Inversiones.
A slower than predicted ramp-up at CAP’s Cerro Negro Norte project meant that it was unlikely the firm would reach its volume sales goal for 2014, said BICE, which added that it was reviewing its CAP stock target price of 7,450 pesos.
Santiago’s blue-chip IPSA stock index was 0.39 pct higher on Monday.
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