Tokyo Steel Manufacturing Company recently announced its non-consolidated financial results for the fiscal year ending 24 March 2024. The company achieved record-breaking sales revenue despite facing lower product shipment unit prices.
Highlights:
1. Net sales up y-o-y: Net sales reached a new high of JPY 367,242 million ($2,343 million), representing a 1.7% y-o-y increase.
2. Sales volume rise y-o-y: Steel sales volumes climbed to 3.265 million tonnes (mnt), up 115,000 tonnes (t) compared to the previous year. Exports significantly contributed to this growth, rising by 114,000 t y-o-y to 776,000 t.
Volume growth offsets lower unit prices:
While unit prices experienced a y-o-y decline, Tokyo Steel successfully countered this by increasing sales volume by 3.7%. This growth was driven by strong demand for steel sheets in both domestic and overseas markets, partially offsetting lower-than-expected sales of building materials.
Profitability maintained
Operating income remained largely unchanged from the previous year, with a slight increase of JPY 3 million ($0.01 million). Increased sales volume, elimination of valuation losses and reduced losses on receipts and payments contributed positively. However, these gains were partially offset by the narrowing of metal spreads and higher energy costs.
Outlook
The company acknowledges that the January-March quarter fell short of volume targets. However, a slight increase in the selling unit price was observed. Tokyo Steel will continue to navigate the market dynamics to ensure sustained profitability.
Note: This article has been written in accordance with an article exchange agreement between Japan Metal Daily and BigMint.