Maruichi Steel Tube Posts Lower Profit in 1H F2011

Maruichi Steel Tube announced on Tuesday the firm posted lower consolidated profits in first half of fiscal 2011 started in April than the figures in same period of fiscal 2010. The firm revised the full year recurring profit target downward by 1.3 billion yen to 17.4 billion yen for fiscal 2011 compared with the figure announced in August. The firm also revised the dividend outlook downward by 2 yen to 26 yen per share for mid-term and to 46 yen for full-year.

Maruichi Steel Tube’s domestic shipment in first half of fiscal 2011 was same as a year earlier level. However, the firm’s half year operating profit from domestic business decreased by 7.5% to 7.837 billion yen with 2.4% higher sales at 45.537 billion yen than the figures in same period of fiscal 2010 due to higher material coil cost.

US subsidiaries’ higher shipment contributed to 92.3% higher operating profit at 809 million yen from North American business in first half of fiscal 2011 from same period of fiscal 2010. However, the firm posted 361 million yen of the loss from Asian operations due to slowing economy and goodwill amortization charge.