Nisshin Steel Trims Profit Target for F2008

Nisshin Steel announced on Friday the firm revised the full year earning target downward to 31 billion yen of consolidated recurring profit for the year ending March 2009, which is 43.1% lower than previous year and 6 billion yen from original estimate. The firm lowered the estimate due to lower raw materials cost when the firm expects the inventory valuation loss is 9 billion yen for stainless business. The firm reduces the raw steel output by 140,000 tonnes in the second half year from the first half to meet slower demand.

The firm expects the consolidated net profit is 18 billion yen for the year to March 2009, which is 43.9% lower than previous year and lower than 22.5 billion yen of original estimate. The firm expects the sales are 685 billion yen, which is 5.5% higher than previous year and lower than 750 billion yen of original estimate.

The firm expects the sales volume will decrease to 1.85 million tonnes including 1.65 million tonnes of carbon steel and 210,000 tonnes of stainless steel in the second half year compared with 1.98 million tonnes including 1.69 million tonnes of carbon steel and 290,000 tonnes of stainless in the first half.

The firm expects the stainless unit posts 2.5 billion yen of recurring profit for the year ending March 2009, which is 92.2% lower than previous year and represents breakeven for the second half year.

The firm reported the consolidated recurring profit decreased by 42.4% to 22.2 billion yen for the first half from same period of 2007. The stainless unit posted 2.5 billion yen of recurring profit, which was 23 billion yen lower than same period of 2007.