Sumitomo Metal Industries announced on Monday the firm reviewed its full-year consolidated net profit to become zero for fiscal 2011 ending in March 2012. The firm appraised investment account security loss of 79.7 billion yen for April-September 2011. Net profit forecast was largely lowered from previous 50 billion yen.
In the first half of fiscal 2011 (April-September), Sumitomo Metals gained consolidated operating profit of 41.2 billion yen, higher by 6.2 billion yen from the forecast. Recurring profit was 41.3 billion yen, higher by 1.3 billion yen against the forecast. Interim dividend payment was decided at 1 yen per share, lower than 2.5 yen in the first half of fiscal 2010, while annual dividend forecast was set at 3.5 yen, as same as that of fiscal 2010. For April-September 2011, negative impact on recurring profit was totally 105 billion yen year-on-year, involving raw material cost upsurge at 84 billion yen and negative effect of earthquake disaster at 4 billion. Meanwhile, recurring profit totally improved by 117.4 billion yen year-on-year, involving sales price improvement for 90.5 billion yen and cost reduction for 18 billion yen. Crude steel output was 6.11 million tonnes for April-September. Three-month output for July-September was 3.34 million tonnes, decreasing by 90,000 tonnes year-on-year. The production is planned at approximately 6.9 million tonnes for the last half of fiscal 2011. By quarters, the output would be 3.4 million tonnes for October-December and 3.5 million tonnes for January-March. The full-year output would decrease slightly from previously estimated 13.3 million tonnes for fiscal 2011. Average steel selling price improved by 2,800 yen to 107,300 yen per tonne for July-September from April-June. Average price is estimated to be 103,000 yen for second half year. The export ratio upped to 42% in the first half year from 41% in the same period of fiscal 2010 in value though the ratio was 40% for July-September. Export ratio is estimated to down to 40% in second half year and average 40% through fiscal 2011. Sales volume of seamless steel tube was 470,000 tonnes in the first half year and is planned at 540,000 tonnes for the last half year. Annual sales volume is estimated to increase by 50,000 tonnes to 1.01 million tonnes in fiscal 2011 from fiscal 2010. Mr. Fumio Honbe, vice president of Sumitomo Metals, explained the firm set full-year recurring profit forecast unchanged at 100 billion yen when raw material price relatively lowered and seamless pipe sales maintain steady though overseas steel markets are currently turning weak and negative impact of flood in Thailand is unforeseeable.
