Nakayama Steel Works to Raise Output by 25% by in F2008

The firm targets 15 billion yen of consolidated recurring profit and 7 billion yen of net profit with 200 billion yen of sales for fiscal 2008. The firm expects the debt is 75 billion yen at the end of March 2009 in line with at the end of March due to the aggressive capital expenditure. The debt equity ratio is less than 100% at the end of March 2009. The firm would carry out 3 targets in the midterm plan. The firm increases the high grade steel products rate from current 20% to 40% in 3 years. The firm will increase the sales for contract users from 45% to 60%. The firm tries to improve the customer services including shorter lead time, quality guarantee and tailor made service. The firm expends total around 25 billion yen for the 3 years. The firm spends 6.5 billion yen for conversion of hot strip mill including new reheat furnace and coil box, 3.8 billion yen for conversion of continuous caster for electric furnace to make wider and thicker products, 2.4 billion yen for better quality of wire and bar mill at the joint venture with Nippon Steel and 2.5 billion yen for products warehouse. The firm announced on Tuesday the record consolidated net profit increased by 13.9% to 8.21 billion yen for fiscal 2005 ended March 2006 from fiscal 2004. The firm posted 12.4% lower operating profit at 15.2 billion yen and 13.3% lower recurring profit at 13.6 billion yen with 9.3% higher sales at 189.7 billion yen.