Japan’s 4 largest steelmakers raise profit forecasts
Citing higher steel prices and strong demand from China, Japan's top four steel producers increased their earnings forecasts by a combined Yen 116 billion ($1.06 billion) for this fiscal year In a statement made to the Tokyo Stock Exchange, Japan's largest steel producer, Nippon Steel, announced that the company raised its net income forecast by 70% to Yen 170 billion for the year ending March 31, 2005. Japan's second largest steelmaker JFE Holdings raised its earnings estimate by 9% to Yen 120 billion. The steelmakers are raising prices due to huge increases in demand from automakers like Toyota Motor Corp. and Honda Motor Corp, and from China, which consumes almost one-third of the world's steel. Nippon Steel's full-year sales estimate was increased to Yen 3.28 trillion from Yen 3.09 trillion, while Japan's third largest steelmaker, Sumitomo Metal Industries increased its full-year profit goal by 86% to Yen 65 billion and its sales forecast 6.2% to Yen 1.20 trillion. And the country's fourth largest producer Kobe Steel, increased its full-year profit target 18% to Yen 40 billion, and its sales estimate 3.6% to Yen 1.42 trillion.