JFE Holdings’ Recurring Profit Steadily Improves in January-March 2010

JFE Holdings announced on Wednesday its consolidated recurring profit decreased by 82.7% to 69.2 billion yen in fiscal 2009 ended in March 2010 from the previous period while the profit became higher by 29.2 billion yen than the estimation announced in January. The recurring profit for January-March improved to 73.5 billion yen from 53.1 billion yen for October-December 2009.

The firm raised the year-end dividend to 20 yen per share from previously planned 15 yen in response to the profit recovery. The firm didn’t announce the financial forecast for fiscal 2010 because the firm hasn’t finished raw material price negotiations.

JFE Holdings posted consolidated recurring loss at 67.2 billion yen for April-June 2009 while gained recurring profit at 9.8 billion yen for July-September. The profit improved step by step in October-December and January-March. As a result, the firm posted recurring loss at 57.4 billion yen for the first half year and recurring profit at 126.6 billion yen for the second half year.

Through fiscal 2009, the recurring profit was 32.3 billion yen for the steel business unit, 13.3 billion yen for the engineering business unit and 21.5 billion yen for the shipbuilding business unit. The profits hit the record high for the engineering and shipbuilding business units.

JFE Steel’s non-consolidated steel shipment decreased to 23.18 million tonnes in fiscal 2009 from 25.06 million tonnes in fiscal 2008. The unit selling price lowered by 30,600 yen to 70,200 yen per tonne. Export ratio rose to 45.6% from 41.6%.

Mr. Kohei Wakabayashi, JFE Holdings’ vice president, said JFE Steel’s sales volume is expected to increase to 7.5 million tonnes for April-June and annually 30 million tonnes in fiscal 2010, up by 15% from fiscal 2009.