Sumitomo Metals posts $51.44 million net profit in Q1 FY 2010-11

Japan-based Sumitomo Metal Industries, Ltd. (Sumitomo Metals) has announced its consolidated financial results for the first quarter of FY 2010-11, ended on June 30, 2010.
 
Accordingly, in the first quarter of the financial year, Sumitomo Metals' net sales rose by 17.6 percent year on year to JPY 341.6 billion ($3.92 billion), while it registered an operating income of JPY 14.29 billion ($164.08 million) compared to an operating loss of JPY 34.54 billion in Q1 FY 2009-10. Sumitomo Metals' net income for the period in question amounted to JPY 4.48 billion ($51.44 million), as a result of an increase in sales of steel products, its efforts to reduce costs as well as its efforts to reflect the changes in raw material costs in the pricing of its steel products.
 
Sumitomo Metals stated that demand for steel products during the first quarter of the fiscal year under review was generally firm, mainly from exports and manufacturers including the automotive sector. The recovery of demand for steel products in the energy sector on which Sumitomo Metals Group focuses its efforts was only moderate. Prices of raw materials greatly increased, accompanying a rapid expansion in demand in China and other regions.
 
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 3.35 million metric tons, increasing slightly by 0.9 percent quarter on quarter and up 46.93 percent as compared to Q1 FY 2009-10.
 
In the first half of FY 2010-11, Sumitomo expects to increase its net sales by 20.3 percent year on year to JPY 720 billion and to achieve a net income of JPY 25 billion.