Nippon Steel reports profit increase for Q3
Japanese steelmaker Nippon Steel Corp. has announced a net profit of Yen 36.7 billion for the third quarter of 2003 due to a recovery in steel sheet prices and increased exports to
China. The company posted a net loss of Yen 5.1 billion for the same period last year.
Nippon Steel's operating profit also showed an increase of 115% and reached to Yen 89.03 billion from Yen 41.4 billion. Sales rose by 6.9% to Yen 1.34 trillion from Yen 1.25 trillion.
Furthermore, the company expects a net profit of Yen 65 billion and an operating profit of Yen 210 billion for the fiscal year ended on March 31, 2004 which are down from the previous forecasts of a net profit of Yen 70 billion and an operating profit of Yen 220 billion. In addition, the company's sales estimation remains unchanged at Yen 2.89 trillion.
Company officials expressed that the profit forecasts are impacted by the explosion at Nagoya mill.
Nippon Steel also announced that the cost caused by the explosion will be Yen 20 billion which was lower than the initial estimated cost of Yen 30 billion.
However, the company can compensate the costs of the explosion by increasing steel shipments and decreasing costs.
In the third quarter, crude steel
production rose by 200'000 mts to 15.4 million mts from 15.2 million mts recorded in the same period last year.