Tokyo Steel to Post Losses for 1H of F2011

Tokyo Steel Manufacturing announced on Tuesday the firm would post 3.4 billion yen of operating loss in the first half of fiscal 2011 ending in March 2012, which represents the loss for 2 half years in a row, while the firm expected breakeven.

Tokyo Steel’s steel selling price decreased due to yen appreciation in the first half of fiscal 2011 and the operation cost in summer was much higher than originally estimated. The exchange loss also hurt the firm’s earnings. The firm reduced earnings target to 89.196 billion yen for sales from 90 billion yen for the first half of fiscal 2011. The firm would post 3.4 billion yen net loss while the firm expected breakeven.