Japan Major Electric Furnaces Post Lower Profit in April-June

Two electric furnace steel makers posted higher recurring profit for April-June according to major 8 makers’ results announced by Wednesday. They reduced the margin due to higher cost of ferrous scrap, raw materials and energy. They managed to keep the profit by keeping the selling price though the many of them reported lower sales and profit from record level in April-June 2005. Tokyo Kohtetsu reported the highest recurring profit increase among them when the firm increased the mid- and small sized shapes output by 15% for construction applications. Tokyo Tekko, which has top maker of high tension screw type steel bar, increased the net profit to 3.6 times. They will improve the profit by increasing the selling price. Godo Steel reported on Wednesday the recurring profit decreased by 19% in April-June from same period of 2005due to averaged 900 yen per tonne higher scrap purchase price and 2,700 yen lower selling price though the sales volume increased by 34,000 tonnes. Tokyo Steel Manufacturing posted 40% lower profit due to lower sales volume and 2,500 yen higher scrap purchase price. Yamato Kogyo reported 47.4% lower operating profit in April-June from same period of 2005 due to higher scrap cost and lower selling price in South Korea while the firm posted higher net profit due to profit from affiliate companies.