Nippon Steel to Post 4% Higher Recurring Profit for 1H

Nippon Steel announced on Thursday the consolidated recurring profit reaches 280 billion yen for half year to September, which is 10 billion yen higher than original outlook and 4% higher than same period of 2006. The firm increases the half year dividend by 1 yen to 5 yen per share. The firm keeps the full year outlook at record 600 billion yen of recurring profit. Nisshin Steel announced on the day the consolidated recurring profit reaches 38.5 billion yen for the half year to September, which is 7.5 billion yen higher than original outlook and 76% higher than same period of 2006. The firm increases the half year dividend by 1 yen to 4 yen per share. The firm revised the full year outlook upward to 62 billion yen of recurring profit, which is 6 billion yen higher from original outlook and same level as last year. Nippon Steel expects the consolidated recurring profit increases by 32 billion yen for the steel and nonferrous businesses for the half year from same period of 2006. The firm revised the net profit outlook by 10 billion yen to 170 billion yen for the half year and by 15 billion yen to 365 billion yen for the full year compared with original outlook. Vice president Kiichiroh Masuda of Nippon Steel said the averaged steel selling price could increase in second half of the year from 80,000 yen per tonne now. He said, however, the firm tries to improve the selling price more in the second half when the annual cost for raw materials will increase by more than 110 billion yen for the full year from previous year. Nisshin Steel posts nickel inventory valuation gain more than original outlook, which lifts the consolidated recurring profit. The firm now expects the nickel ingot price is US$ 20.3 per pound in the first half and US$ 13 in second half compared with original outlook of US$ 19.4 and US$ 20 respectively.