Sumitomo Metal reports strong revenue growth
Japan's third largest steelmaker, Sumitomo Metal Industries Ltd., reported a 96 percent increase in net profit for the six months ended September 30, 2005, thanks to higher sales prices.
The strong demand for pipes, especially OCTG product, as well the strong demand from the automobile industry, brought Yen 92.07 billion ($783.62 million) profit to the company, nearly double the Yen 46.95 billion ($399.42 million) from the first six months of the 2004 fiscal year.
Meanwhile the crude steel
production of the company increased 220'000 metric tons year on year to 6.60 million metric tons. The average sales price of the company's steel products increased 15.2 percent from the previous six months ended March 31, 2005, and brought the operating profit to Yen 144.80 billion ($1.23 billion), up 85 percent year on year.
The company also raised its annual net profit forecast by 38 percent to Yen 197 billion ($1.68 billion). The company plans to produce 13.30 million metric tons of crude steel for the entire 2005 fiscal year (ending Marc 31, 2006), up 3.34 percent.