Japan Major Zinc Coated Steel Sheet Makers Post Lower Profits for F2009

Japanese major 3 zinc coated steel sheet makers posted lower sales and profits for fiscal 2009 ended in March 2010 compared with fiscal 2008. The demand declined and the selling price dropped. Nippon Steel & Sumikin Coated Steel posted worse recurring loss and net loss. JFE Galvanizing & Coating turned into the red. The 3 makers didn’t announce the financial forecasts for fiscal 2011.

In the second half of fiscal 2009, Yodogawa Steel Works gained recurring profit at 1.261 billion yen while Nippon Steel & Sumikin Coated Steel posted recurring loss at 1.749 million yen. JFE Galvanizing & Coating posted recurring profit at 460 million yen.

The sales volume decreased by 5.6% to 534,000 tonnes at Yodogawa Steel Works in fiscal 2009 from fiscal 2008. Nippon Steel & Sumikin Coated Steel’s sales volume decreased by 8%. The sales volume of JFE Galvanizing & Coating widely decreased in the first 6 months.

In fiscal 2010, the demand condition is unforeseeable and material prices are prospected to rise more in and after July. Each maker tries to pass higher material costs on the selling price as well as advance business optimization for better profitability.