Tokyo Steel to Return Recurring Profit in F 2011 after 3 Years

Tokyo Steel Manufacturing announced on Wednesday the firm would post 3 billion yen of recurring profit for fiscal 2011 started April while the firm posted 9.095 billion yen of recurring loss in fiscal 2010. Tokyo Steel estimates the firm gains the recurring profit for fiscal 2011 for the first time in 3 years with higher steel output at Tahara plant. The firm plans to increase the output to 750,000 tonnes at Tahara plant for fiscal 2011 from slightly more than 100,000 tonens in fiscal 2010. The firm estimates 2.8 million tonnes of steel sales with 75,000 yen per tonne of the averaged steel sales price and 40,000 yen per tonne of ferrous scrap purchase cost. The firm plans to reduce capital expenditure to 5.5 billion yen for fiscal 2011 from 16.5 billion yen from fiscal 2010.

Tokyo Steel’s recurring loss increased to 9.095 billion yen in fiscal 2010 from 2.91 billion yen of recurring loss in fiscal 2009, which represented the loss for 2 years in a row. The firm posted 1.028 billion yen of extraordinary loss in fiscal 2010 due to impact of the major earthquake. The net loss of the firm increased to 10.425 billion yen in fiscal 2010 from 6.785 billion yen of net loss in fiscal 2009.

Tokyo Steel’s steel sales increased by 28.8% to 2.183 million tonnes, of which 45% was long products with 55% flat rolled, in fiscal 2010 from fiscal 2009. The steel sales were less than 65% compared with the level before Lehman Shock. The steel export was 94,000 tonnes in fiscal 2010 as same as fiscal 2009. The averaged steel sales price increased by 9.3% to 68,000 yen per tonne in fiscal 2010 from fiscal 2009.