Nippon Steel announces Q1 financial results
Japanese steel producer Nippon Steel Corporation (NSC) has recently posted financial results of first quarter ended on June 30, 2004.
According to the report released by the company, net income has been reported as Yen 23.3 billion ($209.6 million) due to economic recovery and rising steel demand and prices.
Sales in the subject quarter increased to Yen 702.2 billion ($6.3 billion).
The improved results recorded by the company are attributed to the economic growth in
Japan. As previously reported by SteelOrbis, Japanese economic growth forecast for the current fiscal year has been increased by the Cabinet Office to 3.5% from the initial forecast of 1.8%. The revival in
Japan's economy is mainly due to rising exports and improving consumer spending.
The power failure at NSC's Nagoya mill is estimated to lower its first-half profit by Yen 12 billion ($108 million). Accordingly, the company forecasts its half year net profit to be Yen 30 billion ($269 million) on sales of Yen 1.44 trillion ($12.9 billion).