JFE Holdings Estimates Q/Q Lower Profit for Jan-Mar 2010

JFE Holdings announced its consolidated financial results for April-December 2009 on Friday. The firm posted consolidated recurring loss of 4.3 billion yen for 9 months while the firm gained consolidated recurring profit of 380.5 billion yen for the corresponding period of fiscal 2008. For October-December 2009, the firm posted consolidated recurring profit of 53.1 billion yen, higher than 9.8 billion yen for July-September 2009. Meanwhile, the profit is estimated to decrease to 44.3 billion yen for January-March 2010. Through a full fiscal year ending in March 2010, the firm now forecasts higher consolidated revenue than previously expected while sets recurring profit forecast unchanged at 40 billion yen due to the increase of inventory evaluating loss.

For October-December 2009, the averaged steel sales price recovered and the negative effect of high-price materials was eased compared with July-September 2009. The consolidated operating profit totaled 15.3 billion yen for April-December 2009. JFE Holdings swept operating loss for the first 6 months.

The non-consolidated steel product shipment was 6.2 million tonnes for October-December 2009, higher than 6.02 million tonnes for October-December 2008 while lower than 6.28 million tonnes for July-September 2009. The averaged sales price was 69,200 yen per tonne, up by 13,000 yen from July-September. The non-consolidated crude steel production was 6.95 million tonnes, increasing by 470,000 tonnes year-to-year and by 50,000 tonnes quarter-to-quarter. Steel product export ratio was 45.4% in value for October-December, lower than 47.7% for July-September.

JFE Holdings estimates the non-consolidated crude steel production at 7.05 million tonnes and the steel product shipment at 6.5 million tonnes for January-March 2010, both of which would increase from the previous quarter. The averaged steel sales price is estimated at 69,000 yen per tonne. The sales price is expected to surge for export while lower for domestic construction materials. Steel product export ratio would rise to 49% in value.