Japan 6 Special Steels Gets the Red for Apr-Jun

Japanese major 6 special steel makers’ consolidated sales decreased and their recurring profit was the red for April-June from same period of 2008 when the demand for mainly automobile reduced largely due to world economic depression, according to their financial results. 6 makers are Hitachi Metals, Daido Steel, Aichi Steel, Sanyo Special Steel, Mitsubishi Steel Mfg and Nippon Kosyuha Steel. Each maker’ sales decreased by over 40% for April-June from the same period of last year. 6 makers forecast the sales reduces for the year ending March 2010, 3 makers forecast the recurring profit is the red and other 3 makers forecast the profit decreases.

Consolidated sales of special steel unit decreased to 41.56 billion yen by 47.7% for Hitachi Metals for April-June from the same period of last year, 36.674 billion yen by 60.4% for Daido Steel, 15.646 billion yen by 58.6% for Aichi Steel, 15.96 billion yen by 65.1% for Sanyo Special Steel, 3.428 billion yen by 82.8% for Mitsubishi Steel and 5.066 billion yen by 54.4% for Nippon Koshuha.

The sales in abroad decreased to 41.064 billion yen by 41.5% for Hitachi Metals for April-June from the same period of last year, 4.799 billion yen by 56.7% for Aichi Steel, 2.457 billion yen by 71.6% for Sanyo Special Steel, 1.97 billion yen for Mitsubishi Steel, and 859 million yen by 44.7% for Nippon Koshuha.

Because the sales reduced largely and the output continued low, 6 makers’ recurring profit was the red. Because raw material, fuel and other material prices, Daido Special reaped a profit at 7.2 billion yen, Aichi Steel at 2.3 billion yen, Sanyo Special Steel at 2.7 billion yen and Nippon Koshuha at 700 million yen. On the other hand, Daido Steel reaped a loss at 24.1 billion yen by reduced sales volume, Aichi Steel at 7.4 billion yen, Sanyo Special Steel at 10.2 billion yen and Nippon Koshuha at 2.3 billion yen.