JFE net income totals JPY 12 billion in September quarter
Monday, 02 Nov 2009
Bloomberg reported that JFE Holdings Inc has returned to profit last quarter as economic stimulus spending revived demand in Asia. Net income was JPY 12.8 billion for the 3 months ended September 30th 2009 as compared with a loss of JPY 41.6 billion in the previous quarter.
JFE maintained its full year profit forecast amid concern that earnings may be curbed by excess supply in China and a stronger yen that cuts the competitiveness of customers such as carmakers.
Mr Kohei Wakabayashi EVP of JFE Holdings said that "Steel demand, especially exports, is on a recovery track as countries' stimulus measures are bearing fruit. It’s still unclear whether a recovery in the supply demand balance will continue."
JFE forecast net income of JPY 24 billion for the year to March 2010, down by 88% YoY. JFE's outlook hadn't factored in any resumption of idled blast furnaces. It suspended operation of two of its nine domestic furnaces after the financial crisis curbed demand.
For the July to September 2009 quarter, sales increased by 22% to JPY 718.1 billion as compared with the previous 3 months. JFE's steel export ratio increased by 5.4 percentage points to 47.7% in the past quarter as compared with the April to June 2009 period.
