Sanyo Special Steel announced on Thursday the firm posted 10.995 billion yen of consolidated recurring profit for fiscal 2011 ended March 2012, which was 17.9% lower than fiscal 2010 level. The net profit decreased by 18.1% to 6.407 billion yen. The lower profit was due to higher yen rate, higher cost for energy and power and higher depreciation.
The annual sales increased by 7.7% from fiscal 2010 due to stable sales volume thanks to higher domestic demand in the first half while the demand decreased in second half especially for construction and industrial machinery. The firm realized 3.1 billion yen of cost reduction in fiscal 2011. However, the higher cost impacted on the profit. The firm expects lower sales and profit for fiscal 2012 from fiscal 2011 due to higher depreciation and uncertain business conditions including summer time power supply. The firm plans 16 billion yen of capital expenditure in fiscal 2012, which is 12.1% lower than fiscal 2011 level. The firm focuses on energy saving and better efficiency. The firm resumes old own power generation facility preparing for potential power shortage.