Sanyo Special Steel announced on Wednesday the firm posted 11.184 billion yen of consolidated operating profit due to steel shipment increase and cost reduction in April-December 2010 while the firm posted 6.183 billion yen of operating loss in same period of 2009.
The firm posted 10.393 billion yen of recurring profit in April-December 2010 compared with 5.945 billion yen of recurring loss in same period of 2009. The net profit was 6.101 billion yen compared with 4.154 billion yen of net loss in same period of 2009. Sanyo Special Steel’s steel shipment increased quarter by quarter through October-December 2010 since second half of fiscal 2009 ended March 2010 when the demand increased for automobile, industrial machine and construction machinery. The profit also increased in fiscal 2010 compared with fiscal 2009. However, the profitability was narrowed to post 14.7% lower consolidated operating profit and 18.4% lower recurring profit in October-December 2010 from July-September partly due to ferrous scrap surcharge pricing. The firm kept the profit target as of October while the results could be affected by yen appreciation and economy slowdown.Japan Steel Scrap Composite Prices (Sangyo Press)
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