Nisshin Steel Reduces Total Cost by 22.5 Billion Yen in F2009

Nisshin Steel, Japanese major steel maker, will reduce total cost by 22.5 billion yen in fiscal 2009 ending in March 2010 from over 20 billion yen at the first plan. The firm gets the profit if the firm’s production rate keeps 80% against the capacity and builds up competition power in the oversea market when the firm expands the steel business worldwide.

The firm established a cost reduction committee in April 2008 when raw material price rose significantly, to review costs of sales operations, production and management departments, and to shrink total cost by 8.5 billion yen or below 6% except for raw material cost and depletion. The firm planned cost reduction by over 20 billion yen for fiscal 2009 due to economic downward in the world, but judged the firm can reduce more cost.

The firm’s recurring loss was 65.1 billion yen for the half year ending September due to low selling price, low sales volume and inventory valuation loss. However, the loss decreased to 20 billion yen for July-September tanks to increased sales volume. The loss was 45 billion yen for April-June. The firm expects the recurring profit is 14 billion yen in last half year at March thanks to increased sales volume, the recurring loss decreases to 51 billion yen in full business year at March 2010 from 62 billion yen of the first plan.