Nippon Steel Posts Slightly Lower Recurring Profit for Apr-Dec 2007

Nippon Steel announced on Monday the firm posted consolidated recurring profit at 434.6 billion yen for April-December 2007, down by 0.7% from the corrisponding period of 2006. The firm’s selling price and sales volume are increasing thanks to the steady steel markets at home and overseas. However, the rising material and fuel costs impacted the profitability. The firm expects the consolidated recurring profit would become 600 billion yen through fiscal 2007 ending March 2008, up by 0.4% from fiscal 2006.The sales increased by 14.3% to 3.506 trillion yen for April-December 2007 from the corresponding period of 2006. The steel business sales increased by 17% to 2.951 trillion yen thanks to the rising selling price and the expanding sales volume. The operating profit of steel business decreased by 7.8% to 359.9 billion yen due to rising material and fuel costs, the revision of depreciation tax system and decreased inventory price of nickel at some group companies. On the other hand, engineering, civil development and system-solution businesses posted higher operating profits.Average selling price of steel products was 80,200 yen per tonne for October-December 2007, up by 3,900 yen from the same period of 2006 while down by 100 yen from July-September 2007 due to the reduction of export revenue by stronger yen against other currencies. The shipment of steel products increased by 3.4% to 8.23 million tonnes for October-December 2007 from the same period of 2006, which increased by 3.8% to 24.27 million tonnes through April-December 2007 from the corresponding period of 2006.The consolidated gross asset was 5.520 trillion yen at the end of December 2007, increasing by 174.5 billion yen from the end of March 2007. The interest-bearing debt increased by 199 billion yen to 1.412 trillion yen.