Maruichi Steel Tube Secures 12.9% Operating Profit Rate in F2012

Maruichi Steel Tube announced the operating profit on sales was 12.9% for fiscal 2011 ended in March 2012 while the consolidated operating profit decreased by 5.5% to 15.6 billion yen from fiscal 2010. The lower profit was due to Asian business while the domestic business kept high profitability. The firm expects for 6.0% lower operating profit at 13.7 billion yen in fiscal 2012 from fiscal 2011.

The firm secured same level of domestic sales volume in fiscal 2011 as fiscal 2010 thanks to recovery in second half of the year while the automobile demand was very slow in the first half due to the major earthquake damage. The domestic operating profit decreased by 3.4% to 15.8 billion yen.

The North American unit’s operating profit increased by 57.5% to 720 million yen in fiscal 2011 from fiscal 2010 due to higher sales volume and price along with cost reduction. The Asian unit posted 943 million yen of operating loss compared with 309 million yen of loss in fiscal 2010 due to higher depreciation and goodwill amortization.

The recurring profit decreased by 5.2% to 17.657 billion yen in fiscal 2011 from fiscal 2010. The net profit decreased by 27.0% to 7.453 billion yen due to 909 million yen of securities valuation loss and 1.827 billion yen of impairment loss of Sun Steel Joint Stock Company.

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