JFE Holdings Increases Recurring Profit by 16.5% for 1H

JFE Holdings announced on Thursday the firm posted 260.8 billion yen of consolidated recurring profit for midterm closing ended September 2007 compared with the same term of last year. The steel business was favorable and the firm expects the profit would hit record 540 billion yen for fiscal 2007 ending March 2008.The sales increased by 12.3% to 1669.3 billion yen for midterm closing ended September 2007 compared to the same term of last year and the net profit increased to 160.8 billion yen by 19.5%. The sales hit the record. The recurring and net profits were the secondly high record after the midterm coding ended September 2005.The steel unit’s consolidated recurring profit increased to 264.3 billion yen by 18.6% for midterm closing ended September 2007 compared to the same term of last year due to cost reduction, the improved selling price for mainly export or the increased sales of high value steel despite of increased material price and freight cost. The crude steel increased to 1.504 million tonnes by 860,000 tonnes for un-consolidated and to 1.691 million tonnes by 840,000 tonnes for consolidated. The salable steel product shipment increased to 1.362 million tonnes by 890,000 tonnes for un-consolidated. The average steel product increased to 79,700 yen per tonne by 5,100 yen for un-consolidated.JFE Holdings expects the consolidated sales increases to 3,540 billion yen by 8.6% in fiscal 2007 from fiscal 2006, the consolidated recurring profit increases to 540 billion yen by 5.2% and the net profit increases to 320 billion yen by 6.8%.