Japanese 4 Integrated Steel Makers Keep High Profit for Mid-Term Settlement

Nippon Steel, Sumitomo Metal Industries and Kobe Steel, Japanese integrated steel makers, announced the half year settlement at September of the accounts on Tuesday. 4 steel makers’ mid term settlement was on the table including JFE Holdings. 4 makers kept high profit thanks to increased selling volume which is mainly high valued steel products and the improved selling price despite of cost escalation of material and fuel. Nippon Steel increased the consolidated recurring profit by 5.6% to 284 billion yen on the half year settlement at September of the accounts compared to the same period of last year. Sumitomo Metals decreased the profit by 2.1% to 152.7 billion yen. Kobe Steel decreased the profit by13.1% to 75.9 billion yen. Sumitomo Metals will increase the year dividend by 2 yen to 10 yen per share. Nippon Steel expects to increase the consolidated recurring profit by 0.4% to 600 billion yen on the settlement of the accounts compared to the accounts in last year, which expects to renew the record for 4 consecutive years. JFE Holdings expects to increase the profit by 5.2% to 540 billion yen, which expects to renew the record. Nippon Steel increased the consolidated sales by 16.8% to 2316.3 billion yen on the half year settlement at September of the accounts compared to the same period of last year, the net profit by 5.6% to 284 billion yen. The consolidated crude steel increased to 17.64 million tonnes by 2.8% in the first half of fiscal 2007 at the ended of March 2008. Steel shipment volume increased to 16.04 million tonnes by 4% based un-consolidated. Steel products average selling price increased to 79,300 yen per tonne by 5,900 yen based un-consolidated. The export rate of steel products sales increased to 34.1% by 1.8 points percentage based money and un-consolidated. The firm expects the net profit keeps the full year outlook at 365 billion yen of net profit. Sumitomo Metals decreased the consolidated sales by 3.23 billion yen on the half year settlement at September of the accounts compared to the same period of last year, the sales by 10.4% to 847.8 billion yen and the net profit decreased by 2.9% to 96.9 billion yen. The consolidated crude steel decreased to 6.61 million tonnes by 0.9% in the first half of fiscal 2007. Steel products average selling price increased to 105,600 yen per tonne by 8,900 yen based un-consolidated. The firm exports to increase the consolidated sales to 1730 billion yen by 7.9% in the settlement of the accounts over the previous year, to decrease the consolidated recurring profit to 3-5 billion yen by 6.9% and to decrease the consolidated net profit to 190 billion yen by 16.2%. Kobe Steel increased the consolidated sales by 15.1% to 1034.6 billion yen on the half year settlement at September of the accounts compared to the same period of last year, the net profit by 8.8% to 47 billion yen. The consolidated crude steel increased to 4.1 million tonnes by 7.7% in the first half of fiscal 2007. Steel sales volume increased to 3.36 million tonnes by 3.5% based un-consolidated. Steel products average selling price increased to 77,400 yen per tonne by 4,000 yen based un-consolidated due to the improvement of the selling price for mainly special steel products. The export rate of steel products sales increased to 23.8% by 1.3 points percentage based money and un-consolidated. The firm expects to increase the consolidated sales to 2150 billion yen by 12.5% while decrease the consolidated recurring profit to 150 billion yen by 18.2% and the net profit to 90 billion yen by 17.9%. Toshiharu Koyama, vice-president, said steel business and machinery business is expected to keep firm in the last half of fiscal 2007, but the consolidated recurring profit would be expected to keep same level of last year due to cost pressure by increased freight and material price, and devaluation loss in inventory of aluminum and copper.