NSSC Posts Recurring Loss in 1H F2010

Nippon Steel & Sumikin Stainless Steel announced on Wednesday the firm posted 1.973 billion yen of consolidated recurring loss for first half of fiscal 2010 started April while the firm posted 2.691 billion yen profit in fist half of fiscal 2009. The firm posted loss when raw material cost up pace was faster than stainless price increase while higher depreciation also impacted on the results after major investment in high valued products including duplex expansion program.

The shipment, which was increasing in April-June, decreased in July-September due to lower export under sharp yen appreciation. The sales increased by 38.0% to 128.12 billion yen in first half of fiscal 2010 compared with same period of fiscal 2009. The steel shipment increased by 24.0% to 455,000 tonnes. However, the shipment decreased by 8.8% to 217,000 tonnes in July-September from April-June.

The firm tries to reduce the cost through across the board effort without exception for better profitability, said Mr. Kenya Ishikawa, director and operating officer of NSSC at the press conference. He said the firm manages to secure the profit for fiscal 2010 by increasing the sales of duplex and high purity ferritic stainless steel while the business condition keeps severe in the second half.