JFE falls into red on stock valuation loss

Kyodo

JFE Holdings Inc. said Friday it logged a group net loss of ¥36.63 billion in fiscal 2011, a reversal from a profit of ¥58.61 billion a year ago, on valuation losses from overseas stock investments it was promoting as part of its growth strategy.

Weakened demand for its mainstay steel products at home and abroad, the yen’s strength and higher materials prices were also blamed for the poor showing, JFE said.

Operating profit sank 75.5 percent to ¥44.78 billion on sales of ¥3.17 trillion, down 0.9 percent.

JFE plans to pay a dividend of ¥20 for the just-ended fiscal year, including ¥10 for the fiscal first half and down from the previous year’s ¥35.