Japan 3 Steel Engineering Companies Gain High Order Receipt in F2010

Japanese 3 major steel engineering makers, Nippon Steel Engineering, JFE Engineering and Kobe Steel successfully gained many order receipts during the latest financial year ended in March 2011 (fiscal 2010). Nippon Steel Engineering and Kobe Steel enjoyed large increase of order receipts year-on-year. JFE Steel could also maintain high order receiving level though the order receipt decreased year-on-year as rebound of remarkably high order acceptance in fiscal 2009. However, all of three companies posted year-on-year lower consolidated net sales in fiscal 2010 due to sharp decline of order receipts in fiscal 2009. Consolidated recurring profits also decreased at all of three companies to reflect severe price competition.

At Nippon Steel Engineering, net sales decreased by 23.2 % to 254.9 billion yen in fiscal 2010 compared with fiscal 2009. The overseas sales decreased to 52.4 billion yen in fiscal 2010 from 79 billion yen in fiscal 2009. The order receipts increased by 63.1% to 334.3 billion yen. Overseas customers’ orders increased to 130.4 billion yen from 38.1 billion yen. The orders especially increased for steel making plant and environmental equipment.

JFE Engineering’s net sales decreased by 9.9% to 265.1 billion yen. The orders acceptance totaled 256.4 billion yen in fiscal 2010, decreasing by 8.2% year-on-year since large scale projects such as expansion of Haneda airport already completed.

Kobe Steel’s engineering business increased orders receipt by 41.7% to 280.8 billion yen. The machinery department could recover orders acceptance from petroleum refinery and petro chemistry industry. The resource & engineering department accepted large orders for direct reduced iron plants.