Metal One Targets 26B Yen Net Profit in F2011

Metal One, Japanese major steel dealer, announced its new mid-term management plan for fiscal 2009-2011 ending in March 2012 on Tuesday, along which the firm targets to expand consolidated net profit by 2.5 times to 26 billion yen in fiscal 2011 from fiscal 2009. The firm plans investment and loan fund at total 12 billion yen for fiscal 2010-2011 into newly growing business fields.

The firm sets consolidated net sales target at 2.6 trillion yen in fiscal 2010 and 2.8 trillion yen in fiscal 2011 from 2.11 trillion yen in fiscal 2009. The firm plans to increase recurring profit to 40 billion yen in fiscal 2010 and 49 billion in fiscal 2011 from 13.5 billion yen in fiscal 2009. As to net profit, the firm aims 18 billion yen in fiscal 2010 and 26 billion yen in fiscal 2011 from 10.5 billion yen in fiscal 2009.

The firm launches a survival strategy to build up the group’s sales power and improve cost structure for better profitability. At the same time, the firm sets a growing strategy to restructure existing core businesses such as building materials and coil centers while to expand offshore businesses in Asia, North America, Brazil and India. The firm also eyes new businesses in environment and energy related fields.