Nippon Steel Forecasts 125B Yen Recurring Profit for 1HF2010

Nippon Steel announced on Wednesday the firm forecasts its consolidated recurring profit at 125 billion yen for April-September 2010 from the red at 86.9 billion yen in the corresponding period of fiscal 2009. For a full year of fiscal 2010 ending in March 2011, the firm estimates consolidated recurring profit at 250 billion yen, which was 11.8 billion yen in fiscal 2009. In April-June 2010, the firm posted recurring profit at 61.8 billion yen, improved from the red at 56.6 billion yen in April-June 2009 and increased by 6.4 billion yen from January-March 2010. The firm forecasts recurring profit at 63.2 billion yen for July-September, increasing for 5 consecutive quarters.

In the first quarter of April-June, Nippon Steel posted consolidated recurring profit at 56.4 billion yen for steel division, 2.6 billion yen for engineering division, 1.9 billion yen for city development division, 1.7 billion yen for chemical division, 700 million yen for new material division and 1.9 billion yen for system solution division.

For July-September, the recurring profit is estimated at 53.6 billion yen for steel division, 2.4 billion yen for engineering division, 1.1 billion yen for city development division, 3.3 billion yen for chemical division, 300 million yen for new material division and 2.6 billion yen for system solution division.

Non-consolidated crude steel output increased to 8 million tonnes for April-June from 4.82 million tonnes in the same period of 2009. Steel export ratio rose to 42.5% from 33.1% of a year earlier in value. Average steel selling price upped by 6,400 yen to 79,100 yen per tonne.

For July-September, crude steel production is planned at 8.4 million tonnes. Export ratio is forecasted at about 40% and average steel selling price at 87,000 yen per tonne. The firm didn’t change annual crude steel output plan at 32 million tonnes for fiscal 2010. Mr. Shinichi Taniguchi, Nippon Steel’ vice president, said adjustment phase in China is expected to complete in the early phase of a second half of fiscal 2010.

For a first half of fiscal 2010, Nippon Steel forecasts consolidated recurring profit increases by 26.3 billion yen to 125 billion yen compared with the second half of fiscal 2009. Steel division’s profit would increase by 33.4 billion yen to 110 billion yen thanks to increasing sales volume and improvement of product mix.