NKK Seamless Steel Tube’s Sales Drops by 68% in F2009

NKK Seamless Steel Tube, a major seamless steel tube maker of Japan, announced annual net sales decreased by 68% to 21.4 billion yen in fiscal 2009 ended in March 2010 compared with fiscal 2008. The firm posted recurring loss at 5.8 billion yen and net loss at 3.1 billion yen in fiscal 2009 though the firm gained recurring profit of 16.9 billion yen and net profit of 10 billion yen in fiscal 2008. The firm posted the first annual loss since the establishment in August 2000.

The firm’s seamless tube production decreased by 71% to 75,000 tonnes in fiscal 2009 from fiscal 2008. The output of 13% chrome seamless tube was 15,000 tonnes, decreasing by 16% year-to-year. Export ratio lowered by 14 percentage points to 66% since offshore oil tube market downturned after global financial crisis.

Offshore seamless tube market significantly shrank in fiscal 2009. NKK Seamless Steel Tube closed the plants extraordinary and applied to Employment Adjustment Subsidy to enhance cost reduction. However, the firm couldn’t sustain the black.

The firm didn’t announce the financial forecasts for fiscal 2010.