JFE reports decline in its Q1 profit

Japan's second largest steelmaker JFE Holdings Inc announced that its net profit fell by 23 percent in the three months ending June 30, 2006 due to rising raw material costs. Net income of the company decreased to Yen 54.9 billion ($474 million) in the subject period from Yen 71.3 billion ($617.2 million) a year earlier. Sales of the company amounted to Yen 691.5 billion ($5.98 billion), indicating a slight decrease compared to previous year. JFE said that the company's earnings fell primarily due to the rising raw material costs.