Nippon Steel & Sumitomo Metal Corp said on July 31 it returned to profit in the three months to June, thanks to strong demand in Japan and the rest of Asia. The Japanese steel giant said its net profit reached 63.4 billion yen ($650 million), reversing a net loss of 87.5 billion a year earlier.
Operating profit reached 56.1 billion yen, swinging from an operating loss of 6.3 billion yen. Sales were 1.29 trillion yen, up 34.0 percent from last year.
Reconstruction work in Japan following the quake-tsunami disaster two years ago boosted demand at home, said the steelmaker, created through the merger of Nippon Steel and Sumitomo Metal in October.
"Export activity also started picking up due to a recovery in some foreign economies, particularly in the ASEAN region, and a correction in the value of the yen from its excessively high level," it said. The company also released its earnings forecast for the first half to September, projecting a net profit of 100 billion yen on sales of 2.7 trillion yen. The October merger created the world's second largest steelmaker behind India's ArcelorMittal.
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