|Name of company:
||JFE Holdings, Inc.
||Fumio Sudo, President and CEO
||Tokyo, Osaka and Nagoya stock exchanges in Japan
||Shuichiro Hayashi, Manager,
Public Relations Sec., General Administration Dept.
Tel: +81-3-3217-4030, Fax: +81-3-3214-6111
TOKYO - JFE Holdings, Inc. today announced its most recent forecast for interim and full-year consolidated results for the fiscal year ending March 31, 2006.
1. Consolidated results forecast
Private capital spending increased and consumer spending grew in the first half of the fiscal year, leading to a modest recovery in the Japanese economy. The JFE Group moved steadily forward in enacting measures to ensure sustainable growth and increase earnings.
In comparison with the previous consolidated results forecast in May, the latest interim forecast projects higher income in the steel business due to the continuing upsurge in demand and strong performance at the JFE Steel Corp. group companies. Demand remains high primarily from the domestic automotive and shipbuilding industries despite production cuts for export markets. For the engineering business, the company anticipates a continuation of the severe business climate and a resulting decline in income. The company expects results in the urban development business to be roughly on par with the previous forecast. The LSI business, however, is forecast to see higher income thanks to the solid market environment for flat-screen televisions and improvements in product costs.
As a result, JFE Holdings forecasts interim consolidated net sales of 1,450.0 billion yen, unchanged from the previous forecast, operating income of 250.0 billion yen and ordinary income of 240.0 billion yen, both up from the previous forecast.
Factoring in the extraordinary loss on the disposal of assets, etc., the company forecasts interim net income of 150.0 billion yen.
For the latter half, the company expects continued economic recovery backed by private-sector demand. It will endeavor to adjust steel production to meet demand, and forecasts steel business income roughly on par with the previous forecast. In the engineering business, the company forecasts lower income from being barred from bidding because of indictments and litigation related to steel bridge projects. In addition, higher materials costs are expected to adversely impact profitability.
For the full year, the company now forecasts net sales of 3,070.0 billion yen, slightly lower than the previous forecast, operating income of 520.0 billion yen, ordinary income of 500.0 billion yen and net income of 290.0 billion yen, all of which are unchanged from previous forecasts.
3. Interim dividend
The JFE Holdings Board of Directors, meeting today, has decided not to pay an interim dividend this year.
Note: These forecasts are based upon management's conclusions in light of information available at the date of publication. Actual results may differ materially from these forecasts.
Supplementary Information for Earnings Forecast for Fiscal Year ending March 31, 2006