Sumitomo Metals now expects higher net loss in H1 FY 2012-13

Japanese steel giant Sumitomo Metals said today, August 30, that it has revised its net loss forecast for the first half ending September 30 of FY 2012-2013 from JPY 8 billion to JPY 128 billion as a result of recognized signs of impairment loss in certain machinery equipment-producing fixed assets held by its subsidiary Sumikin Iron & Steel Corp. related to lower profitability resulting from the deteriorated business environment.
 
In consideration of recoverability of those assets, Sumitomo Metals now expects to  recognize an impairment loss of approximately JPY 120 billion as an extraordinary loss in its first six-month consolidated financial forecast of FY 2012-2013.
 
Sumitomo Metals said that Sumikin Iron & Steel Corp. will continue to operate as a manufacturing base as it expects to keep generating cash flow in the future.