Japan Major 5 Steels’ Recurring Profit is Red for Apr-Jun

Japanese 5 major steel makers got the red of consolidated profit for April-June 2009 due to dropped selling volume and price, carry-over of higher price raw material and inventory written down. JFE Holdings and Sumitomo Metal Industries’ recurring profit was the red for the first time from started quarter settlement announcement. Nippon Steel, Kobe Steel ad Nisshin Steel got the red of the profit for 2 consecutive quarters. Their profit is expected to improve for July-September due to increased sales volume and reduced inventory written down, but 5 makers’ recurring profit is expected to be the red in half year ending September. 4 makers will pass on cash dividend in the half year ending September. JFE Holdings forecasts the recurring profit is the red at 40 billion yen in the year ending March 2010. Nippon Steel forecasts the profit is zero. Kobe Steel and Nisshin Steel forecast the profit is the red for the first time in 8 years while in 2 consecutive years.