Kobe Steel expects to increase its sales in 2006

Kobe Steel expects to increase its sales in 2006

Japan's Kobe Steel aims to expand its sales at its main iron and steel division to Yen 570 billion (approx. $5 billion) for the fiscal year ending in March 2006, from Yen 523 billion in fiscal 2002. Also, the company expects to increase its pre-tax profits from Yen 21 billion to Yen 50 billion. The company is going to improve the production of higher value-added products like speciality steel wire rod and bar, high strength steel and residual stress-controlled Thermo Mechanical Control Process steel plate in order to succeed in this strategy. Furthermore, Kobe Steel is planning to strengthen its operations, particularly to China and US in order to boost financial results for the financial year ending in March 2006. In addition, the company is anticipating to make a net profit of Yen 36 billion and group sales will reach to Yen 1.3 trillion for the fiscal year ending in March 2006 when compared with net profit of Yen 1.7 billion and group sales of Yen 1.2 trillion in the previous fiscal year. Furthermore, company expects to increase operating profit from Yen 81 billion toYen 125 billion and cuts costs by Yen 40 billion. The variable cost will be raised to Yen 22 billion while the fixed cost will be raised to Yen 18 billion and they also decrease debt to Yen 640 billion from Yen 896 billion.