Japan-based Sumitomo Metal Industries, Ltd. (Sumitomo Metals) has announced its consolidated financial results for the Japanese financial year of 2008, ended March 31, 2009.
Accordingly, the company's net sales increased by 5.7 percent to JPY 1,844 billion ($18,734 billion), its operating income decreased by 17.6 percent to JPY 226 billion ($2.295 billion), while its net income decreased by 46.1 percent to JPY 97.327 billion ($988.643 million) in FY 2008 compared to the previous financial year.
In the release issued by Sumitomo Metals Group, the company said that the business environment drastically changed during the fourth quarter of the fiscal year 2008. During the first three quarters of the fiscal year there was steady demand for steel products in both the domestic and international markets, particularly in the automotive and energy sectors. Meanwhile, raw material costs increased significantly due to a surge in prices of raw materials such as iron ore and coal.
During the fourth quarter of the fiscal year 2008, steel demand, particularly in the automotive and electronics sectors, decreased sharply due to the decline in the global economy stemming from the financial crisis in the United States. However, there was steady demand for high quality products in the energy sector, such as seamless pipe, and for rolling stock components, the company said.
The company estimates that its net sales in FY 2009 will decrease by 25.7 percent to JPY 1,370 billion ($13.917 billion) and that its operating income will fall by 86.7 percent to JPY 30 billion ($305 million), compared to FY 2008.