Japanese steel producer Nippon Steel has announced that its net profit increased by 16 percent for the first quarter (April 1 to June 30, 2007) thanks to high demand from the automotive, shipbuilding and machinery industries. However, the company said that it is striving to reduce its costs, also adding that it will be obliged to request price increases due to higher costs for raw materials and fuel.
The Tokyo-based company said in its press release that net profit in the first quarter of 2007, jumped to Yen 86.70 billion ($728.58 million), compared with Yen 74.75 billion ($728.58 million) a year earlier, while the company's operating profit rose by 8.3 percent to Yen 129.46 billion ($1.09 billion) from Yen 119.59 billion ($1 billion).
According to the statement, the demand for medium-high grade steel used in automobiles and shipbuilding is strong both globally and locally. In anticipation of solid demand, the company has taken steps to improve its capacity and quality, Nippon Steel said.
Nippon Steel signed a non-binding memorandum of understanding with Arcelor Mittal on July 13 to expand their joint activities in North America.