Itoh Iron & Steel to Post First Loss in 10 Years

Japanese major concrete reinforcing steel bar maker, Itoh Iron & Steel expects steel shipment including rebar and rebar with screw joint decreases by 13% in fiscal 2010 started April from fiscal 2009 when the demand is very slow in April-June and will be the slow pace through the year. The firm expects to post 1.41 billion yen of recurring loss in fiscal 2010 while the firm posted the profit for 9 straight years through fiscal 2009.

The firm expects the averaged steel selling price increases by 7% to 66,000 yen per tonne but the sales would decrease by 7.2% to 24.4 billion yen in fiscal 2010 from fiscal 2009. The firm expects the averaged ferrous scrap cost is 39,000 yen in fiscal 2010, which is 50% higher than fiscal 2009 level.

The firm’s capital expenditure was 1.6 billion yen in fiscal 2009, which was less than the depreciation. However, the firm reduces the expenditure to around 1 billion yen in fiscal 2010.