Japan Electric Furnaces Post Less Profits in 1H

Japanese major 12 electric furnace steel makers posted less recurring profits in first half of fiscal 2006 ending March 2007 from the same period of fiscal 2005, while Yamato Kogyo and Tokyo Kotetsu gained more profits. Their profits were reduced by 20-30% when purchasing price for ferrous scrap increased by average 2,000-3,000 yen per tonne in 1H from a year ago. Yamato Kogyo gained profit growth thanks to favorable business condition in North America. Tokyo Kotetsu increased the sales volume by about 10%. The 14 makers estimate they could increase net sales through fiscal 2006 from fiscal 2005 when the selling price seem to keep steady. However, their profits would decrease by the influence of higher costs of raw materials.Topy Industries announced on Friday the firm posted 5.924 billion yen of consolidated recurring profit in 1H of fiscal 2006, which decreased by 16.1% from the same period of fiscal 2005. Tokyo Steel Manufacturing posted less sales and profits in 1H of fiscal 2006 from the same period of fiscal 2005, which decreased from the previous year for 3 consecutive years as the half-year results. Chubu Steel Plate posted less sales and profits for the first time in 3 years and Asahi Industries in 7 years.