Yamato Steel Sees Lower Earnings from Shipbuilding Steel for F2012

Japanese major electric furnace steel maker, Yamato Steel plans 1.6 billion yen of recurring profit with 44.7 billion yen of sales for fiscal 2012 started in April compared with 1.9 billion yen of the profit with 43.4 billion yen of sales with in fiscal 2011. The firm tries to keep the profit level by increasing the profit from steel business as fiscal 2011 level while the firm sees slower shipbuilding pace in Japan would impacts on the earnings for the shipbuilding related business.

Yamato Steel Targets 1.4 billion yen of recurring profit with 40 billion yen of sales for steel business for fiscal 2012 compared with 1.4 billion yen of the profit with 38 billion yen of sales in fiscal 2011. The steel business unit plans to increase steel selling volume by 43,000 tonnes to 569,000 tonnes from fiscal 2011 while the unit keeps 70,000 yen per tonne of selling price as fiscal 2011. The firm eyes higher demand for rebuilding activity in the major earthquake damaged area.

The firm tries to avoid loss for the shipbuilding related unit in fiscal 2012 compared with 400 million yen of recurring profit in fiscal 2011 while the sales decreased from 5.4 billion yen to 4.6 billion yen. The firm drastically reduces cost when Japanese shipbuilding pace is slower than expected.