Nippon Steel & Sumitomo Metal achieved success in 2013

Nippon Steel & Sumitomo Metal Corporation posted profit in the past nine months, including December, amid strong demand following the country's economic recovery. The second largest steelmaker in the world said that net income for the period was 192.8 billion JPY out of 4 trillion. JPY sales.

The steel company, formed through the merger of Nippon Steel and Sumitomo Metal, reported that it had a net loss of JPY 151.9 billion on sales of JPY 3.1 trillion in the same period last year. JPY when the two firms were in the midst of a merger.

The growth in domestic demand for steel in the country was provided by government programs for the restoration of facilities after the earthquake and tsunami in 2011 in Japan. Domestic demand for steel remains strong in the outlook for this demand.

The company's restructuring and the country's economic policies are paying off, achieving high efficiencies in the construction areas, while demand from the manufacturing industry has increased on the back of a recovery in fixed capital investment.

However, Nippon Steel said it faced certain challenges, such as declining global steel prices driven by strong production from Chinese factories. The steel company exceeded its total annual net profit forecast, which reached 220 billion JPY from its previous estimate of 200 billion JPY. The increase in profit was due to proceeds from the sale of shares.