Tokyo Steel Posts Operating Loss for April-June

Tokyo Steel Manufacturing announced on Friday the firm posted 477 million yen of operating loss for April-June, which represented loss for 2 quarters in a row under higher ferrous scrap cost and lower steel selling price. The firm expects 9 billion yen of operating profit for July-September with peaking scrap cost and higher export price. The firm revised the full year outlook downward to 22 billion yen of recurring profit from 24 billion yen of original estimate for the year ending March 2009. The firm posted 529 million yen of recurring profit in April-June, which was 94% lower than same period of 2007. The firm posted 93.9% lower net profit at 328 million yen with 13.9% higher sales at 69.756 billion yen. The averaged steel selling price was 95,000 yen per tonne in April-June, which was 21,400 yen higher than same period of 2007. However, ferrous scrap cost jumped more than that. The steel sales decreased by 11.7% to 732,000 tonnes, of which domestic sales decreased by 4.9% to 675,000 tonnes while the export decreased by 52.1% to 57,000 tonnes. The firm revised the full year outlook downward to 20 billion yen of operating profit for the year ending March 2009 from original 23 billion yen. The firm now expects the net profit is 12.5 billion yen with 327 billion yen of sales compared with original 14 billion yen and 330 billion yen respectively.