Japan Major Steel Wire Makers Post Recurring Lower Profit, Loss in F2011

Japanese major 6 steel wire makers posted lower recurring profit or wider loss in fiscal 2011 ended March 2012 than the figures in fiscal 2010. The results reflected slower demand due to the impacts of the major earthquake and Thai flood. The makers expect better net profit for fiscal 2012 but they see potential weakness in domestic and offshore market.

Two makers of Suzuki Metal Industry and Tokyo Rope Mfg. posted higher sales in fiscal 2011 compared with the figures in fiscal 2010. Suzuki Metal Industry’s offshore subsidiaries increased steel wire selling volume and Tokyo Rope’s order backlog contributed higher sales while other four makers of Sumitomo (SEI) Steel Wire, Suncall Corporation, Shinko Wire and Nichia Steel Works posted lower sales.

Sumitomo (SEI) Steel Wire’s sales decreased for automobile in fiscal 2011 from fiscal 2010 due to auto makers’ output suspension just after the quake. Suncall Corporation’s sales decreased for precision parts, suspension spring and printer. Shinko Wire’s steel wire and wire rope selling volume decreased. All of 6 makers posted lower recurring profit or wider loss.

Two makers of Suzuki Metal Industry and Suncall Corporation posted lower net profit in fiscal 2011 than the figures in fiscal 2010. Tokyo Rope and Sumitomo (SEI) Steel Wire posted the loss. Tokyo Rope posted extraordinary loss for the restructure of steel code business including optimization of production to offshore plant. Nichia Steel Works regained profit.

Four makers of Suzuki Metal Industry, Suncall Corporation, Shinko Wire and Nichia Steel Works expect higher net profit for fiscal 2012 compared with the figures in fiscal 2011. Tokyo Rope expects narrower net loss while Sumitomo (SEI) Steel Wire failed to disclose the forecast. The makers expect the demand would increase for the rebuilding activity in the quake damaged area but they see potential weakness under uncertainty of domestic and offshore economy.

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