Nippon Steel Corp. said Thursday it posted a group net profit in fiscal 2000 of 26.49 billion yen, up by 137.1 percent.
The soaring profit margin was attributed to robust sales, cost-cutting efforts and 111.98 billion yen in extraordinary profits such as gains from selling securities holdings and fixed assets.
The firm also saw its group pretax profit jump 72.2 percent to 111.37 billion yen in the year that ended March 31, on sales of 2.75 trillion yen, up 2.6 percent. Revenues were powered by brisk steel sales in Japan and other parts of Asia along with steady earnings by its information technology business.
But sales in urban development and engineering, hit by sluggish construction demand in Japan and overseas, fell from the previous year.
Despite high oil prices, group operating profit surged 35.2 percent to 162.64 billion yen, helped by an aggressive cost-cutting drive.
The company plans to pay an annual dividend of 1.5 yen per share, unchanged from the previous year.
On an unconsolidated basis, Nippon Steel recorded a net profit of 18.36 billion yen, up from the previous year’s 266 million yen. Pretax profit rose 84.9 percent to 78.78 billion yen, on sales of 1.848 trillion yen, a rise of 2.1 percent.
For the current business year, it anticipates a larger group net profit of 60 billion yen and a pretax profit of 115 billion yen on sales of 2.720 trillion yen.
NKK records profit
NKK Corp. on Thursday announced a profit in fiscal 2000, its first in three years.
In a sharp turnaround from the previous year’s net loss of 45.93 billion yen, the steelmaker posted a group net profit of 96.99 billion yen.
The company attributed its success to improved profitability through cost-cutting and other streamlining efforts.
as well as gains from selling fixed assets and securities holdings.
Group pretax profit rose 110.9 percent, to 43.02 billion yen, and operating profit came to 80.59 billion yen, up 30.1 percent, on sales of 1.787 trillion yen, up 6 percent.
Although per-share net profit came to 28.47 yen — compared with the previous year’s per-share loss of 13.48 yen — the company said it will skip dividend payments for the third year in a row.
NKK, which is to integrate its management with Kawasaki Steel Corp. in October 2002 under a joint holding company, booked 93.21 billion yen in profit from sales of fixed properties, 24.97 billion yen from security holdings and 8.51 billion yen from sales of shares in subsidiaries.
On a parent-only basis, the company posted a pretax profit of 47.45 billion yen, up 102.5 percent, but its net profit fell 54.1 percent to 1.53 billion yen.
Operating profit came to 58.7 billion yen, up 31.2 percent, on sales of 1.01 trillion yen, up 2 percent.
For the current year, NKK expects a consolidated net profit of 5 billion yen, pretax profit of 20 billion yen and sales of 1.76 trillion yen.
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