Japanese steelmaker Sumitomo Metal Industries, Ltd (Sumitomo Metals) has announced its consolidated financial results for the first half (ended September 30) of FY 2011-12.
Accordingly, in the first half of the current Japanese financial year, Sumitomo Metals' net sales decreased by 0.2 percent year on year to JPY 692.2 billion ($8.8 billion), while it registered an operating income of JPY 41.2 billion ($528.6 million), up by 18.7 percent compared to the same half of the previous year. For the period in question, Sumitomo Metals recorded a net loss of JPY 32.3 billion ($414.9 million) due to valuation loss on investment securities and damage to the Kashima Steel Works caused by the earthquake in March.
Sumitomo Metals stated that during the second quarter demand for steel products recovered, mainly for those for the automotive industry, following the decline in the first quarter due to the earthquake in March.
According to Sumitomo Metals' statement, the company is trying to replenish more than half of the JPY 100 billion of cash demand needed for the recovery of Kashima Steel Works.
In the first half of the year, the crude steel production of Sumitomo Metals amounted to 6.11 million metric tons, down almost 10 percent as compared to H1 FY 2010-11.
Regarding the forecasts for the entire financial year, Sumitomo Metals' statement said that the company will seek to "improve profitability by continuing to reduce costs, improve steel prices as well as proceed with the recovery plan to generate cash needed to recover the damage caused by the earthquake."