Krosaki Harima to Clear 3-Year Profit Target

Japanese major refractory maker, Krosaki Harima will clear consolidated sales targets of 100 billion yen under 3-year plan through fiscal 2011 ending in March 2012. Higher Indian sales contribute to the target after the firm acquired majority share in Tata Refractories in India in May, which changed the name into TRL Krosaki Refractories. Krosaki Harima tries to clear the profit target of more than 4 billion yen of recurring profit through total cost reduction and the Indian subsidiary’s better profitability in second half of fiscal 2011.

Krosaki Harima merged 3 domestic subsidiaries into Krosaki Harima Cera Corporation as a part of effort for better competitiveness under the 3-year plan. The firm reorganized the business unit into depending on the items and terminated fine ceramics joint business to continue the business on its own. The firm established Krosaki Magnesita Refractories in USA and Chinese business controlling company.

Krosaki Harima posted around 49 billion yen of the sales in first half of fiscal 2011. The sales increased by 4.7% from same period of fiscal 2010 when the firm consolidated TRL Krosaki Refractories as the subsidiary. However, the recurring profit decreased by 62.8% to around 1.1 billion yen mainly due to higher raw material cost. The firm tries to improve cost structure in the second half for better profitability.