Sumitomo Metals Tries to Recover Recurring Profit in F2010

Sumitomo Metal Industries announced on Wednesday the firm posted consolidated annual recurring loss for the first time in recent 10 financial years. The annual loss totaled 36.6 billion yen for fiscal 2009 ended in March 2010. Cost cutting efforts contributed to year-on-year profit improvement of 294 billion yen but price down of steel products and evaluating loss caused year-on-year profit decline of 556.3 billion yen. The firm decided to decrease the yearly dividend to 5 yen per share for fiscal 2009 from 10 yen of fiscal 2008. For fiscal 2010, the firm forecasts consolidated annual operating profit at 90 billion yen and recurring profit at 80 billion yen.

On the non-consolidated base, Sumitomo Metals gained annual recurring profit at 18.4 billion yen in fiscal 2009. However, investment loss on equity method totaled 44.7 billion yen and pulled down the consolidated result.

Sumitomo Metals’ crude steel production totaled 11.65 million tonnes in fiscal 2009 including Sumitomo Metals (Kokura) and Sumikin Iron & Steel Corporation. The volume decreased by 1.22 million tonnes from fiscal 2008. The Group’s exporting rate was 43% and the averaged selling price of steel products was 88,000 yen per tonne in fiscal 2009. The averaged price declined by 36,300 yen.

Sumitomo Metals estimates the annual crude steel production at approximately 13.7 million tonnes for fiscal 2010, of which 6.8 million tonnes in the first half year and 6.9 million tonnes in the second half year. The annual dividend is scheduled at 5 yen per share. The sales volume of seamless steel tube is forecasted at around 900,000 tonnes in fiscal 2010.