Japanese steelmaker Sumitomo Metal Industries, Ltd (Sumitomo Metals) has announced its consolidated financial results for the first quarter ended June 30 of the financial year 2012-13.
Accordingly, in the given quarter, Sumitomo Metals' net sales increased by 11.4 percent year on year to JPY 342 billion ($4.36 billion), while it registered an operating loss of JPY 11.2 billion ($143 million), compared to an operating income of JPY 16.8 billion in the corresponding quarter of the previous financial year. For the period in question, Sumitomo Metals recorded a net loss of JPY 20 billion ($255.17 million) compared to a net income of JPY 3.2 billion in the first quarter of FY 2011-12.
According to Sumitomo Metals' statement, during the quarter in question, "although domestic demand for steel products, mainly those destined for the automotive sector, showed signs of recovery, demand in overseas markets for steel products weakened and market conditions worsened due to the influence of the European financial crisis and the slowdown of the Chinese economy. Although raw material costs declined year on year, they continued to remain at a high level."
In the first quarter of FY 2012-13, the crude steel production of Sumitomo Metals amounted to 3.07 million mt, up 10.8 percent year on year. For the second quarter, the company expects to produce approximately 3.48 million mt of crude steel.