nippon steel to open new zinc plating plant

Nippon Steel sees higher earnings on robust premium steel demand.

Nippon Steel Corp. said Thursday it expects to report a group net profit of 300 billion yen for the current fiscal year to March 2007, revising upward its earlier estimate of 280 billion yen.

Operating profit is now estimated at 510 billion yen, up from 475 billion yen. Recurring profit is projected at 500 billion yen, up from 460 billion yen, on sales of 4.1 trillion yen, up from 4 trillion yen.

The upward revision stems from an increase in demand for high-grade steel products for use in automobiles, ships and industrial machineries mainly from overseas manufacturers, Japan's largest steel maker said.

To meet the growing demand for high-grade products, Nippon Steel will start operating a new zinc-plating line for steel sheets used in automobiles later this year, the company said.

While expecting growth in demand for high-grade steel products, Nippon Steel remains cautious on prospects of the market for general-purpose steel products.

The company said it needs to keep a close watch on how an increase in production by Chinese steelmakers would affect market conditions.

For the April-September first half, the company said it expects to post a net profit of 160 billion yen, up from previously estimated 135 billion yen. Recurring profit is projected at 250 billion yen, up from 220 billion yen, on sales of 1.97 trillion yen, up from 1.9 trillion yen.

Nippon Steel will pay an interim dividend of 4 yen per share, the first interim payout since 1992

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