Osaka Steel Posts 18.5% Lower 9 Months Recurring Profit

Osaka Steel announced on Thursday the firm posted 5.728 billon yen of consolidated recurring profit for April-December 2010, which was 18.5% lower than same period of 2009. The firm posted 16% higher net profit at 4.747 billion yen when the firm posted 1.801 billion yen of special gain from real estate sales in Osaka. The firm secured certain level of profit by securing 649,000 tonnes of sales volume including export and across the board cost cutting effort.

The sales increased by 4.9% to 17.106 billion yen for October-December from same period of 2009 while the recurring profit decreased by 31% to 1.335 billion yen. The steel sales volume increased by 11.9% to 225,000 tonnes.

The firm revised the profit target downward to 6 billion yen of recurring profit for the year ending March 2011 from 8 billion yen outlook as of October 2010. The firm expects 4.9 billion yen of net profit with 71 billion yen of sales compared with outlook at 6.1 billion yen profit with 76 billion yen sales as of October.

The firm tries to reduce the cost in manufacturing, marketing and procurement under the higher ferrous scrap market while the firm improves the selling price level. The firm also improves the products’ grade while the firm expands the global operation and alliance with other companies.