OREANDA-NEWS. August 16, 2011. Sumitomo Metal Industries, Ltd. (the "Company ") makes the following notification regarding forecasts for its financial performances for FY2011 (ending March 31, 2012). Also please be notified that on July 28, 2011, the Board of Directors of the Company has decided to revise its dividends forecasts for FY2011 (ending March 31, 2012.)

(Figures less than a million yen are truncated.)

1.Forecasts for Financial Performances

(1) Consolidated Financial Performances for the First Half of FY2011 (April 1, 2011 - September 30, 2011)

 

Net sales

Operating income

Ordinary income

Net income

Net income per share

Results for the first half of the previous fiscal year (first half of FY2010) (A)

Million yen 693,783

Million yen 34,778

Million yen 28,967

Million yen 34,889

Yen 7.53

Forecasts

(B)

700,000

35,000

40,000

15,000

3.24

Difference

(B-A)

6,216

221

11,032

(19,889)

 

Rate of change

(%)

0.9

0.6

38.1

-57.0

 

(2) Consolidated Financial Performances for FY2011 (April 1, 2011 - March 31, 2012)

 

Net sales

Operating income

Ordinary income

Net income/ (losses)

Net income/ (losses) per share

 

 

Million yen

Million yen

Million yen

Million yen

Yen

Results for the previous year (FY2010)

fiscal (A)

1,402,454

56,301

34,049

(7,144)

(1.54)

Forecasts

(B)

1,530,000

90,000

100,000

50,000

10.79

Difference

(B-A)

127,545

33,698

65,950

57,144

 

Rate of change

(%)

9.1

59.9

193.7

-

 

(3) Overview of the Forecasts

During the current fiscal year, there are many uncertainties in the business environment, which include the future price trend of raw material prices, risk of over-supply in China and other markets, and effects of power shortages on the demand from Japan's manufacturing industries. On the other hand, the supply- demand situation of seamless pipe in the overseas market is expected to improve and the domestic automotive production is likely to recover to the pre-earthquake level as the recovery from the Great East Japan Earthquake progresses, leading into an improvement in steel demand.

2. Revised Forecasts for Dividends

(1)        Reason for the Revision

The Company's year-end dividend forecast is 2.5 yen per share, as the forecast for the financial performances for the current fiscal year is at the level that enabales stable dividend payment.

(2)        Details of the Revision

 

Per share dividend

Record date

Interim-end (September 30, 2011)

Year-end (March 31, 2012)

Full-year

Previous forecasts

1.00 yen

(To be decided)

(To be decided)

Revised forecasts

1.00 yen

2.50 yen

3.50 yen

Dividends paid at the current period (FY2011)

 

 

 

Dividends paid at the previous period (FY2010 ended March 31, 2011)

2.50 yen

1.00 yen

3.50 yen

(Note) The above information was originally prepared and published by the Company in Japanese. This English translation is being provided for your convenience only. To the extent there is any discrepancy between the English translation and the original Japanese version, please refer to the Japanese version. The financial information was prepared in accordance with generally accepted accounting principles in Japan.

(Note) The financial forecasts and forward-looking statements in this release are based on information available at the time of publication and certain assumptions that are considered reasonable. Consequently, actual results may differ from forecasts stated in this release due to a range of factors.