JFE Holdings Inc has announced financial results for the first half of 2009-10. It returned to quarterly profit and stuck to an annual outlook that some called conservative as government stimulus moves lead a strong revival of exports and car sales.

JFE said that it booked JPY 9.8 billion in recurring profit before tax and special items in July to September 2009 period as compared with a profit of JPY 146.51 billion a year ago.

JFE stuck to a recurring profit forecast of JPY 40 billion for the full year to March 2010 as compared with a consensus estimate of a profit of JPY 47.9 billion in a poll of 18 analysts by Thomson Reuters.

Mr Kohei Wakabayashi EVP of JFE said that the company has kept its outlook for crude steel output at 13 million tonnes for the second half, or up from 12 million tonnes in April to September 2009 period.

While Japan's crude steel output is expected to recover to a level near last year's in the current quarter, exports and car production remain the sole bright spots in the sector. The key domestic construction sector remains weak, while demand from machinery makers remains nearly 40% below last year's levels as manufacturers cut back on capital spending.