Nisshin Steel Forecasts Full Year Recurring Profit at 20B Yen for F2010

Nisshin Steel announced on Friday the firm forecasts full-year consolidated recurring profit at 20 billion yen for fiscal 2010 ending in March 2011, turning into black from 53.7 billion yen loss in fiscal 2009. The firm expects for the first full-year black since fiscal 2007. For the first half of fiscal 2010, the firm forecasts 12 billion yen profit against 65.1 billion yen loss in the corresponding period of fiscal 2009.

Nisshin Steel posted consolidated recurring profit at 1.6 billion yen for April-June 2010 against 45 billion yen loss in the same period of fiscal 2009. Sales volume recovered and sales price improved. Non-consolidated crude steel output increased to 960,000 tonnes for April-June 2010 from 640,000 tonnes in the same period of fiscal 2009. Stainless steel output increased to 140,000 tonnes from 90,000 tonnes. Export ratio lowered to 20% from 21% on sales. Average sales price surged to 115,000 yen per tonne from 102,000 yen per tonne.

Compared with January-March 2010, recurring profit decreased by 3.6 billion yen. It took a time to penetrate price hike of special steel products in response to high raw material costs.

For July-September, the firm forecasts crude steel output at 990,000 tonnes and stainless crude steel output at 140,000 tonnes. Export ratio is expected at 14% and average steel price at 127,000 yen per tonne. As for quarterly recurring profit, the firm estimates 10.4 billion yen due to favorable sales volume, price improvement and the subsidiaries’ profit increase.

Nisshin Steel set a full-year financial outlook including negative factors of steel adjustment in China and the end of Japanese government’s stimulus measure for eco-car. The firm plans 6-month crud steel output at 1.85 million tonnes for the second half of fiscal 2010.