Kobe Steel’s sales drop by 23.3 percent in FY 2009-10

Japanese steelmaker Kobe Steel Group has issued its financial results for the fiscal year 2009-10, stating that the company's sales volumes in the year did not reach the level of fiscal year 2008-09.
 
According to the financial results, in comparison to FY 2008-09, which saw a substantial amount of extraordinary loss and liquidation of deferred income tax assets, net income in FY 2009-10 improved by Yen 37.7 billion from a Yen 31.4 billion net loss to a Yen 6.3 billion net income ($67.3 million).
 
The operating income of the company was Yen 46 billion ($491.9 million) in FY 2009-10, compared with an operating income of Yen 116.9 billion in the previous fiscal year, decreasing by 60.6 percent.
 
Sales revenues in FY 2009-10 decreased by 23.3 percent year on year from Yen 2.18 trillion ($491.9 million) to Yen 1.67 trillion ($14.9 billion).
 
The company said that the Japanese and world economy remained weak and slow in FY 2009-10 compared with the previous fiscal year, despite some recovery in late FY 2009-10.
 
Regarding the outlook for FY 2010-11, Kobe said that the company is unable to forecast both raw material prices and product prices in its iron and steel segment, which exerts a large influence on Kobe Steel's business results. As a result, Kobe Steel is unable to formulate a reasonable earnings forecast for FY 2010-11.
 
As for the dividend at the end of FY 2009-10, Kobe Steel intends to pay Yen 1.50 per share, taking into account the recovery in its business performance and other factors.