Japan Special Steel Makers Mark Highest Earnings in F2005

Japanese 6 special steel makers posted much increase of their sales and profits in fiscal 2005 ended March 2006 thanks to firm production of automobiles for which they supply much related products and selling price improvement for special steel products. Hitachi Metals, Aichi Steel, Daido Steel, Sanyo Special Steel and Mitsubishi Steel Mfg marked the highest consolidated sales and profits. Nihon Koshuha Steel also marked the highest recurring profit. Recurring profits of 6 makers increased by more than 20% from the previous year, especially doubled at Aichi Steel and tripled at Sanyo Special Steel and Mitsubishi Steel Mfg. They could absorb increasing material costs including ferrous scrap and ferro-alloy by selling price hike of special steel products.Aichi Steel, Daido Steel, Sanyo Special Steel and Mitsubishi Steel Mfg increased their dividends and Nihon Koshuha Steel resumed a dividend with favorable earning results. All makers estimate their consolidated sales and profits continue to increase in fiscal 2006 ending March 2007 and mark records again when auto production is expected to maintain the high level.The 6 special steel makers advanced globalization and increased overseas sales ratio steadily in fiscal 2005. Consolidated overseas sales increased by 14.1% to 232.1 billion yen at Hitachi Metals in fiscal 2005 from fiscal 2004, sales ratio of which increased by 2.9 points to 39.3%. Daido Steel increased consolidated overseas sales by 22.7% to 61.5 billion yen and sales ratio by 1.1 points to 12.8%. Aichi Steel increased overseas sales by 55.5% to 38.7 billion yen and sales ratio by 3.7 points to 17.2%. Overseas sales increased by 42% to 18.5 billion yen at Sanyo Special Steel, sales ratio of which increased by 1.7 points to 13.8%.Their selling price of special steel products also improved. Daido Steel could achieve price hike almost fully and the price increased by 16%, which equals to 19,000 yen per tonne, in fiscal 2005 from fiscal 2004. Sanyo Special Steel could also raise its selling price by 18,000 yen per tonne.