Nippon Steel, Sumitomo Metals Post Record Profit in F2006

Nippon Steel and Sumitomo Metal Industries announced on Friday they renewed the record consolidated recurring profit for fiscal 2006 ended March 2007 for 3 years in a row as Kobe Steel announced the record profit on Thursday. Nisshin Steel posted near record profit on Friday as JFE Holdings announced on Thursday. They enjoyed high level demand for high valued steel products. Nippon Steel expects record consolidated recurring profit at 600 billion yen and JFE Holdings eyes record 520 billion yen for fiscal 2007.

Nippon Steel posted 597.6 billion yen of consolidated recurring profit for fiscal 2006, which increased by 9.2% from fiscal 2005 and increased for 5 years in a row. The group company lifted the profit to 17.6 billion yen higher than estimate in March. The firm said the actual profit without onetime items increased by 20% from fiscal 2005. The firm expects any improvement for the averaged steel selling price for fiscal 2007 from fiscal 2006.

Sumitomo Metals posted 16.7% higher consolidated recurring profit at 327.6 billion yen for fiscal 2006 from fiscal 2005. The net profit renewed the record for 3 years in a row due to firm demand for seamless pipe. The firm increases the dividend to annual 8 yen per share for fiscal 2006 compared with 7 yen in fiscal 2005 and will keep 8 yen dividend for fiscal 2007.

Nisshin Steel posted 1.6% lower consolidated recurring profit at 62.1 billion yen for fiscal 2006 from fiscal 2005 due to higher raw materials cost and change of depreciation method. The firm expects another lower profit for fiscal 2007 due to higher raw materials cost and higher depreciation under low revision.

See attached table.