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| Nippon Steel Posts Ordinary Profit For Oct - Dec Quarter After 4-Quarter Interval |
| = 43.3 billion yen of ordinary profit = = |
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Nippon Steel Corp has secured consolidated ordinary profit, at 43.3 billion yen, for the third quarter of fiscal year 2009 (Oct - Dec 2009) for the first time in four quarters, according to the Company's January 28 announcement. The profit, however, went 104.8 billion yen lower than in the corresponding quarter of a year before. By year-on-year variation factors, there was a minus factor of 240 billion yen due to reduced commodity prices and changes in product line-up, which was offset by the plus factor of 140 billion yen due to the reduced costs of sale, hence the balance of approximately 100 billion yen. In terms of unitary steel product price, the minus factor in sales represented 32,000 yen/ton, and the plus factor in cost of sales 18,000 yen/ton. This led to the decline of approximately 14,000 yen/ton in margin. For the full fiscal year 2009, the Company expects 10 billion yen of ordinary profit to be secured, as a result of the ordinary loss from the first half year operations (Apr - Sep 2009) at 86.9 billion yen, and the outlook for the second half year (Oct '09 - Mar'10) forecast at 96.9 billion yen. Final dividend is planned at 1.5 yen per share. The major ground for the above outlook for the second half is largely due to the new crude steel production capacity (prior to consolidation) of 35 million tons per annum (Mt/a) which the Company has built up by enlarging No. 1 blast furnace capacity at the Company's Oita Works. This new production capacity signifies 8.75 Mt/a in single quarter equivalent. During the October to December quarter, capacity utilization ran at 90% plus, which is likely to be sustained into the next fiscal year to start April 2010. Shinichi Taniguchi, Representative Director and Executive Vice President, Nippon Steel commented; "We see growth speed of Asian markets increasingly remarkable. To take opportunity would allow us to keep on our growth, too." |
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| last modified : Wed 03 Feb, 2010 [10:51] |
