Japan-based Sumitomo Metal Industries, Ltd. (Sumitomo Metals) has announced its consolidated financial results for the first half FY 2010-11, ended on September 30, 2010.
Accordingly, first half of the financial year, Sumitomo Metals' net sales rose by 15.9 percent year on year to JPY 693.78 billion ($8.53 billion), while it registered an operating income of JPY 34.78 billion ($427.64 million) compared to an operating loss of JPY 28.06 billion in H1 FY 2009-10. Sumitomo Metals' net income for the period in question amounted to JPY 34.89 billion ($428.98 million), compared to JPY 46.68 billion loss a year ago.
Sumitomo Metals stated that demand for steel products during the period of the fiscal year under review was generally firm, mainly from exports and manufacturers including the automotive sector. On the other hand, the difficult business conditions continued with such factors.
Under these circumstances, Sumitomo Metals Group has made efforts to improve profitability through cost reductions and has worked to reflect the changes in raw material costs in the pricing of its steel products.
In the given period, crude steel production of Sumitomo Metals amounted to 6.78 million metric tons, up 33.72 percent as compared to H1 FY 2009-10.
In FY 2010-11, Sumitomo expects to increase its net sales by 16.7 percent year on year to JPY 1.5 trillion and to achieve a net income of JPY 60 billion.