State enterprise profits shrink in Q1

Beijing (CNS) -- State-run enterprises earned 9.1 percent less money in the first quarter of this year than in the same period of 2011, according to the Ministry of Finance on Wednesday.

The tobacco, auto, electric power, post and telecommunications industries achieved sharper revenue hikes year-on-year, while earnings fell in the steel, building materials, chemical and non-ferrous metal sectors. The ministry did not reveal exact numbers.

The decline in the steel industry for the first time this century was caused by higher raw material costs and lower market prices due to less demand, according to the China Iron & Steel Association.

From January to March, state companies achieved total revenues of almost 9.46 trillion yuan (about US$1.5 trillion), up 12.9 percent year-on-year, with profits amounting to 482.86 billion yuan. Regional firms had larger profit decreases than central ones.