Japanese steelmaker Sumitomo Metal Industries, Ltd (Sumitomo Metals) has announced its consolidated financial results for the financial year 2011-12.
Accordingly, in the given financial year, Sumitomo Metals' net sales increased by 5.1 percent year on year to JPY 1.47 trillion ($18.3 billion), while it registered an operating income of JPY 76.8 billion ($956.3 million), up 36.4 percent year on year. For the period in question, Sumitomo Metals recorded a net loss of JPY 53.7 billion ($668.5 million) compared to a net income of JPY 15.9 billion in FY 2010-11.
According to Sumitomo Metals' statement, during FY 2011-12 "domestic demand for steel, mainly for automobiles, fell significantly as a result of the Great East Japan Earthquake in March 2011; however, demand recovered from the latter stages of the first half of the fiscal year onwards. The overseas market was in a harsh business environment because of the ongoing weakness in the sheet steel market and flooding in Thailand, resulting in a decline in export volume."
In FY 2011-12, the crude steel production of Sumitomo Metals amounted to 12.72 million mt, down from 12.90 million mt in the previous financial year.
Regarding the next financial year, Sumitomo stated that it has no forecasts currently available. The company has not yet begun negotiations over the prices of its main raw materials, and it is currently involved in discussions with its major product users to revise steel prices.