Nippon Steel expected to increase earnings

Nippon Steel is expected to report a 40 percent increase in group pre-tax profit to about Yen 520 billion ($4.5 billion) for the year to March due to the growing demand for steel products, particularly those used in automobiles. Sales are expected to increase 12 percent from fiscal 2004 to around Yen 3.8 trillion ($32.7 billion). Operating profit will likely rise 28 percent to around Yen 550 billion ($4.7 billion). Earnings will be supported by robust sales of high-grade steel products it supplies to manufacturers in such industries as automobile, machinery and shipbuilding.