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| Tokyo Steel's Apr-Sep Pretax Profit Down 81.5% To Y3,522M |
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Tokyo Steel Mfg Co incurred a fall of 81.5% to Y3,522 million as pretax profit in its nonconsolidated earnings results for April-September 2009 or for the first half of fiscal 2009 (April 2009-March 2010). For main factors, the sales volume of steel products decreased in slack demand and ferrous scrap prices advanced, leading to increased costs of steel operations. The company announced its nonconsolidated results of Y55,131 million in sales for April-September 2009, down 67.7% from the same period of 2008; Y3,294 million in operating profit, down 81.1%; Y3,522 million in pretax profit, down 81.5%; and Y1,648 million in net profit, down 85.3%. The company posted an extraordinary loss of Y747 million for an electric furnace accident at its flagship Okayama works. The ratio of pretax profit to sales decreased from 11.1% to 6.4%. The sales volume of steel products totaled 856,000 tons in April-September 2009, down 725,000 tons or 45.9% from the same period of 2008, when their sales prices averaged Y64,200/ton, down Y43,700 or 40.5%. Of the total sales volume, exports accounted for only 5,000 tons whereby the export ratio plunged to 0.5% from 15.6% in corresponding period of 2008. Capital spending totaled Y43.3 billion, while depreciation expenses amounted to Y4,500 million. Also, the company announced revisions of its nonconsolidated earnings prospects for fiscal 2009. The revised prospects are Y119.2 billion in sales, down 57.2% from a year ago; Y5,300 million in operating profit, down 90.1%; Y5,600 million in pretax profit, down 89.9%; and Y1,500 million in net profit, down 95.3%. They go with assumptions for the latter half of fiscal 2009 that the sales volume of steel products would total 1,060,000 tons; their sales prices would average Y60,500/ton; and ferrous scrap costs would average Y22,500/ton. |
| last modified : Wed 28 Oct, 2009 [10:23] |
