Kobe records a profit in third quarter of FY 2009-10

Japanese steelmaker Kobe Steel Ltd (Kobe) has issued its financial results for the third quarter ended December 31 of the fiscal year 2009-10 (FY 2009-10) and its financial forecast for the full financial year. Kobe has decreased its loss forecast for the full financial year by 37 percent, saying that sales in cars and electronics industries have been higher than predicted.
 
Net income at the company was Yen 7.4 billion ($81.4 million) for the three months ended December 31, compared with a loss of Yen 12 billion in the previous quarter. Net sales revenue in the third quarter of FY 2009-10 was Yen 418.1 billion ($4.6 billion) with a minor change from Yen 410.2 billion a quarter earlier.
 
The company's net loss in the first three quarters of FY 2009-10 was Yen 37.9 billion ($419.7 million), compared to income of Yen 42 billion in the same period of FY 2008-09. Net sales revenue in the first nine months of FY 2009-10 was Yen 1.21 trillion ($13.4 billion), 29.7 percent less than Yen 1.72 trillion during the same period of the previous financial year.
 
Kobe also revised its prediction for the full financial year results. The steelmaker expects net sales of Yen 1.67 trillion ($18.5 billion) and a net loss of Yen 22 billion ($243.6 million) at the end of the financial year. The company earlier estimated a loss of Yen 35 million for the full year.
 
Kobe also estimates 6.6 million mt of crude steel output at the end of the financial year, with an increase compared to the previous estimate of 6.4 million mt.
 
Demand for steel products from domestic automakers and electrical machinery manufacturers began recovering in the second quarter of the fiscal 2009-10, as well as demand overseas, mainly in China, the company statement said.