JFE Holdings Forecasts 220B Yen Annual Recurring Profit for F2010

JFE Holdings announced on Tuesday the firm forecasts its consolidated recurring profit increases by 3.2 times to 220 billion yen in fiscal 2010 ending in March 2011 compared with the previous fiscal year. Recurring profit is forecasted to expand by 6.2 times to 200 billion yen for steel division while decrease for engineering and shipbuilding divisions. The quarterly recurring profit was 51.4 billion yen for April-June 2010, recovering from 67.2 billion yen loss in April-June 2009 while decreasing compared with 73.5 billion yen profit in January-March 2010.

For a first half of fiscal 2010, JFE Holdings forecasts consolidated net sales at 1.62 trillion yen with recurring profit at 100 billion yen and net profit at 50 billion yen.

In the first quarter of April-June, the consolidated recurring profit was 46.1 billion yen for steel division and 7.2 billion yen for shipbuilding division. Engineering division posted recurring loss at 90 million yen. JFE Steel’s crude steel output increased to 7.26 million tonnes on non-consolidated base from 5.12 million tonnes in April-June 2009. Steel export ratio rose to 49.5% from 42.3% of a year earlier. Average steel selling price upped by 5,000 yen to 74,600 yen per tonne.

Crude steel production is planned at 7.54 million tonnes for July-September. Export ratio is forecasted at 48% and average steel selling price at 84,000 yen per tonne. JFE Steel’s non-consolidated recurring profit was 34.9 billion yen for April-June. The profit is forecasted at 65 billion yen for the first half of fiscal 2010.

Mr. Yoshio Ishikawa, JFE Holdings’ vice president, said at a press conference domestic demand maintains constant volume thanks to healthy activities of manufacturing industries though demand for building construction stays at low level. He also gave a view steel inventory adjustment in China wouldn’t continue so long. He showed a concern on business circumstances in the second half of fiscal 2010 and said the firm may adjust steel output if demand declines to keep the selling price level.