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POM: Explanation for business result Pomina Steel Corporation explained reasons causing the losses in the two consecutive years 2013 and 2014:
1) The steel ingot plant has a big investment expense, but its capacity has not meet requirements. So, the depreciation cost and interest expense were high.
2) In 2014, material prices varied sharply, especially from January 01, 2015, ore prices decreased over 50% and scrap prices reduced nearly 40%. This was the main reason causing the losses.
Recovery plan in 2015: In 2015, POM will have profit because of the following reasons:
1) Material prices have been lowest as from 2008.
2) Financial expense in 2015 will decrease sharply because the long-term borrowing reduced from 1,200 billion dongs to 790 billion dongs in 2015, and the short-term debts decreased 30% equivalent to the decrease of material prices. HOSE
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