Sato Shoji to Post 3 Billion yen Net Profit in Fiscal 2012

Sato Shoji, Japanese major steel trade firm, increases its consolidated revenue to 200 billion yen and raise net profit to 3 billion yen until fiscal 2012 ending March 2013. The firm estimates 150 billion yen of revenue and 1.3 billion yen of net profit for fiscal 2010 while the firm usually posts 170 billion yen of revenue and 2 billion yen of net profit. The firm invests 30% of profit to improve the business in emerging countries such as China, Thailand, and Vietnam for higher profit from overseas.

Sato Shoji announced its consolidated revenue is expected at 117 billion yen and net loss is at 450 million yen for fiscal 2009. The firm expects 645 million yen of net profit for second half the year while the firm posted 1.09 billion yen of loss in first half. At this rate, net profit improves to 1.3 billion yen in fiscal 2010.

Despite an increase in demand, the firm forecasts its net profit would stay at around 1.3 billion yen per year without active sales expanding. The firm aims to cultivate the overseas market to increase the profit to 3 billion yen in fiscal 2012.

The electronic material sales are firm at the subsidiaries in Hong Kong and Thailand. These firms’ sales increase to Japanese and South Korean electronics makers.

Sato Shoji’s sales in India increases and the firm plan to establish a steel trade subsidiary in South Korea.