JFE announced its earnings for the fiscal year of 2003

JFE announced its earnings for the fiscal year of 2003

Japan's steelmaker JFE Holdings, officially established through the merger of NKK Corp. and Kawasaki Steel Corp.on April 1, 2003, announced its profit as Yen 105 billion for the fiscal year ending on March 31, 2003. The company expects to improve its profit in the current year due to higher steel prices and benefits gained through the merger. JFE reported its net sales as Yen 2.426 billion for last year and is competing with Nippon Steel which is Japan's largest steel producer with an annual production capacity of about 30 million tons. The company is expecting to increase pre-tax profit to Yen 170 billion for the fiscal year ending on March 31, 2004 with the help of its cost cutting efforts and high steel prices. As a result of the merger effects, such as reduced procurement costs, sharing technology and lower capital expenditure, JFE announced its annual savings as Yen 20 billion and will increase its savings to Yen 80 million. Furthermore, JFE announced its decisions about the restructing plans which includes to close 2 blast furnaces and other installations. The facilities which are going to be destined for a close down are blast furnace no.5 at Chiba and blast furnace no.1 at Mizushima. Furthermore, one section mill, one or two pipe mills, three galvanizing lines and one tinning line will be closed by JFE. Meanwhile, stainless steel slab production at Fukuyama mill will be passed to Chiba. Also JFE is anticipating to make an annual profit of Yen 250 billion and a %10 return on sales for the fiscal year of 2005-06.