Godo Steel Increases Long Products Sales to 1.2MT in F2011

Godo Steel plans to increase the non-consolidated sales volume by 7.4% to 1.2 million tonnes in fiscal 2011 started in April compared with the previous fiscal year by restructuring of domestic sales network and increasing of export. The firm tries to reduce productive cost, improve productivity of shaped steel, and to increase high value added wire rod.

The firm plans to increase the full-year consolidated net sales by 20.1% to 156 billion yen in fiscal 2011 from fiscal 2010 with consolidated recurring profit expansion by about 6.5 times to 5 billion yen, turning into the black of net profit at 4.6 billion yen.

As for sales of structural steel, the firm plans the non-consolidated sales at 240,000-250,000 tonnes for fiscal 2011, almost same volume as in fiscal 2010. Wire rod, shaped steel and rebar sales are expected to increase by around 10% to 950,000 tonnes in fiscal 2011.

The firm exported billet at 152,000 tonnes in fiscal 2010 and steel products at 66,000 tonnes. Especially, the firm built up bland power for billet by improvement of quality in Funabashi works. In 2011, the firm will continue market research at overseas and extend export despite of higher yen rate.

At the same time, the firm tries to lower ferrous scrap purchasing cost by resolution of ferrous scrap price mechanism and improvement of business flow.