Japan Electric Furnaces Post Lower 6-month Profits

Japanese major 16 electric furnace steel makers posted year-to-year lower sales for a half year ended in September 2009 from the same period of fiscal 2008. 7 makers gained year-to-year higher recurring profits while 5 makers posted lower recurring profits. The rest 4 makers posted recurring losses.

Their sales volume and selling price decreased for April-September 2009 from the same period of fiscal 2008. Some makers raised profits mainly for rebar since purchasing price of ferrous scrap lowered by 32,000-36,000 yen per tonne during the period. Return of Sales of 12 makers upped to 10.8%. 13 makers expect lower full-year sales and 11 makers forecasts lower full-year recurring profits for fiscal 2009.

Tokyo Steel Manufacturing reduced the selling price by 43,700 yen per tonne for April-September from the same period of 2008. JFE Bards & Shapes lowered the selling price by 27,700 yen per tonne. Minus range of ferrous scrap price was wider than the range of selling price down for April-September compared with the same period of 2008. As a result, 12 makers gained profits.

They expect for severer business conditions for October-March 2010 due to lower selling price. Many makers revised their full-year result forecast for fiscal 2009 downward.