Tokyo Steel Posts 21% Lower Profit for F2005

Tokyo Steel Manufacturing announced on Thursday the recurring profit decreased by 21.4% to 58.2 billion yen for the parent firm for fiscal 2005 ended April from fiscal 2004. The profit was 4th best despite of the drop from record in fiscal 2004. The operating profit decreased by 21.1% 57.5 billion yen and the net profit decreased by 33% to 33.9 billion yen with 9.9% less sales at 209.1 billion yen. The firm posted profit in line with the original plan thanks to lower ferrous scrap price than expected though the firm reduced the output with lower flat steel export. The firm expects 50 billion yen of recurring profit and 29 billion yen of net profit with 231 billion yen of sales for fiscal 2006. The flat steel sales decreased by 7.2% to 3.12 million tonnes for fiscal 2005 from fiscal 2004. The export decreased by 80% to 76,000 tonnes due to lower hot rolled coil export. The firm expects the flat steel sales will increase to 3.45 million tonnes in fiscal 2006 with higher sales both at home and abroad.