Tokyo Steel’s Recurring Profit Expands by 8 Times for Apr-Jun

Tokyo Steel Manufacturing, Japanese largest electric furnace steel maker, announced on Wednesday its non-consolidated recurring profit expanded by 8 times to 4.315 billion yen in first quarter (April-June) from the corresponding period of last year. Averaged steel selling price decreased by 27,200 yen to 67,800 yen per tonne while averaged purchase price of ferrous scrap decreased by 35,000 yen to 22,000-23,000 yen per tonne. Turnover decreased by 61.9% to 26.542 billion yen. Net profit increased by about 7 times to 2.275 billion yen. Return on Sales (ROS) improved by 15.5 percentage points to 16.3%.

Steel sales volume totaled 390,000 tonnes in the first quarter, decreasing by 46.7% from the corresponding period of last year. Export volume was zero, which was 57,000 tonnes for April-June 2008. The firm revised down sales volume forecast for April-September 2009 to 850,000 tonnes from previously estimated 1 million tonnes while set the sales forecast for October 2009 ?March 2010 unchanged at 1.2 million tonnes.

The firm revised down net sales forecast to 54.9 billion yen from previously estimated 60.5 billion yen for the first half of fiscal 2009 (Apr-Sep), operating profit to 4.1 billion yen from 4.5 billion yen, recurring profit to 4.4 billion yen from 4.5 billion yen and net profit to 2 billion yen from 2.5 billion yen. For a full year of fiscal 2009 (Apr09-Mar10), the firm reviewed net sales forecast to 132.2 billion yen from previously estimated 133 billion yen, operating profit to 5.5 billion yen from 6 billion yen while didn’t change recurring profit forecast at 6 billion yen and net profit at 1.5 billion yen.