Nippon Metal Industry Aims ROS 5.8% along New Business Plan to F2008

Nippon Metal Industry aims to improve its ROS (Return on Sales) by 1.5 percentage points to 5.8% in fiscal 2008 ending March 2009 from fiscal 2005, increasing the consolidated net sales by 10.7% to 120 billion yen and the recurring profit by 52.2% to 7 billion yen along its new 3-year management plan to fiscal 2008, announced Nippon Metal Industry on Friday. Parent company aims to improve ROS by 1.8 points to 6.1% in fiscal 2008 from fiscal 2005, increasing the net sales by 11.3% to 106 billion yen and the recurring profit by 58.5% to 6.5 billion yen. The firm improves the profitability through construction of strong group infrastructure which could response to external environmental changes flexibly, mainly integrating producing and processing system at Kinuura works.Nippon Metal Industry aims to expand the sales ratio of its original stainless steel products containing less nickel from current 25% to 30%, to cultivate overseas markets of precision stainless steel rolled products and to strengthen other high-value-added products such as secondary processed products. The firm plans around 10 billion yen of capital investment during 3 years toward fiscal 2008. In production, the firm enhances cost and productivity competitiveness at Kinuura works and advances cooperation with other stainless steel makers.The firm also sustains the surcharge system for prices of all stainless steel products and holds stable profits, when raw materials supply is tightening and the prices are surging.