Kyoei Steel, Godo Steel Post Higher Profit for April-June

Kyoei Steel posted 5.676 billion yen of consolidated recurring profit for April-June, which was 4.97 times of the profit in the same period of 2008, announced on Friday. Godo Steel posted 1.298 billion yen of consolidated recurring profit for April-June while the firm posted 1.63 billion yen of recurring loss for April-June 2008.

Kyoei Steel’s sales decreased by 47.7% to 29.133 billion yen for April-June from same period of 2008 when the shipment declined by 30.8% to about 160,000 tonnes and the averaged products price dropped by around 19,000 yen per tonne. However, the profit significantly increased when ferrous scrap price declined by about 40,000 yen per tonne.

Godo Steel’s sales decreased by 58.4% to 23.67 billion yen for April-June 2009 from same period of 2008 when the shipment declined by 50.6% to 193,891 tonnes and the averaged price dropped by 14,200 yen to 72,327 yen per tonne. The profit increased due to the decline in ferrous scrap price.

Kyoei Steel left the earnings outlook for full year to March 2010 despite the weak demand, the pressure for price cut and other uncertainty. Godo Steel revised the full year outlook downward to 1 billion yen of consolidated recurring profit from original 7.5 billion yen as of April due to lower selling price and higher scrap cost.