Tokyo Steel Manufacturing has announced impressive financial results for the first quarter and has revised its full-year profit forecast upwards. The company reported a 30pct YoY increase in net profit, reaching JPY 8.845 bln (USD 62 mln) for the period ending June 30.
During the first quarter, the company experienced a 13pct YoY rise in revenue, totaling JPY 102.755 bln (USD 7.2 bln). This growth was attributed to increased shipping volume and higher-than-expected selling prices, driven by robust demand for private capital spending.
Tokyo Steel also successfully procured scrap at lower prices than initially estimated, while simultaneously reducing fixed costs through improved capacity utilization.
In light of its strong performance, the company has raised its net profit forecast for the fiscal year ending March 2024. Tokyo Steel now anticipates a 22pct decrease in net profit, with projected earnings of JPY 24 bln (USD 169 mln), up from the previous estimate of JPY 21 bln.
Tokyo Steel’s annual crude steel production capacity is 2.5 mln tons. The company operates four production plants in Japan and offers long and flat steel products including, H-beams, rebar, plates and HRC. Looking ahead, the company has ambitious plans to increase its steel capacity to 6 mln tons per year by 2030, with a further target of 10 mln tons per year by 2050.
1 USD / 141.8 JPY
