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|Kyoei Steel, Chubu Steel Report Apr-Sep Earnings Results|
Japan's electric steelmakers Kyoei Steel Ltd and Chubu Steel Plate Co reported their consolidated earnings results for April-September 2008, in which the two companies won an increase in income but suffered a decrease in profits, affected by increased costs of raw materials. But both companies have made upward revisions of their consolidated earnings prospects for the whole of fiscal 2008 (April 2008-March 2009) in the wake of a plunging ferrous scrap market since August, which will bring each company an increased net profit. |
[Kyoei Steel Ltd]
The company announced its consolidated results of Y115,655 million in sales for April-September 2008, up 31.5% from the same period of 2007; Y7,119 million in operating profit, down 20.5%; Y7,774 million in pretax profit, down 15.4%; and Y3,875 million in net profit, down 36.8%. The company's shipments of steel products decreased by nearly 60,000 tons or 5.9%, but their average price increased by Y25,000/ton, compared with the same period of 2007. The average cost of ferrous scrap rose by nearly Y23,000/ton.
For fiscal 2008, the company describes its consolidated earnings prospects as Y195 billion in sales, up 7.4% from a year ago; Y23 billion in operating profit, up 33.8%; Y24 billion in pretax profit, up 36.0%; and Y13.5 billion in net profit, up 22.0%. The prospects represent revisions of the earlier ones to meet an enlarged spread between what the company charges for steel products and what the company pays for ferrous scrap in falling prices of ferrous scrap. A downward revision by Y40 billion applies to sales, but there are upward revisions by Y6,000 million in operating profit, by Y6,000 million in pretax profit, and by Y3,100 million in net profit. As a result, the group net profit is projected to increase by 22.0% in contrast with the initially forecast decrease by 6.1%.
[Chubu Steel Plate Co]
The company announced its consolidated results of Y40,729 million in sales for April-September 2008, up 35.0% from the same period of 2007; Y3,038 million in operating profit, down 3.3%; Y3,037 million in pretax profit, down 2.2%; and Y1,052 million in net profit, down 35.0%.
For fiscal 2008, the company estimates its consolidated results at Y84.9 billion in sales, up 31.5% from a year ago; Y14 billion in operating profit, up 122.2%; Y13.9 billion in pretax profit, up 121.5%; and Y7,000 million in net profit, up 100.3%. The estimated figures are upward revisions of the earlier forecasts by Y7,500 million in operating profit, by Y7,500 million in pretax profit, and by Y4,000 million in net profit.
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