OREANDA-NEWS. August 02, 2012. Japan’s economy in the first quarter of fiscal 2012 (April-June period) was gradually recovering on the back of rising demand for recovery and reconstruction work after the Great East Japan Earthquake in March 2011 and economic stimulus measures. In overseas markets, the pace of economic growth in China and economic recovery in the United States continued to decelerate amid the financial crisis in Europe, reported the press-centre of Kobe Steel.

In this economic environment, the Kobe Steel Group saw sales volume (in terms of tons sold) of steel products and aluminum rolled products remaining flat in comparison to the same quarter last year.

Although domestic demand was firm, the export environment worsened due to the sluggish overseas steel market and the high yen. Unit sales of hydraulic excavators fell in comparison to the same period last year. Although domestic demand increased owing to recovery and reconstruction work after the massive earthquake last year and demand in Southeast Asia was firm, China, a major market, was largely affected by its monetary tightening policy.

As a result, Kobe Steel’s consolidated sales in the first quarter of fiscal 2012 decreased 37.2 billion yen, in comparison to the same period last year, to 434.1 billion yen. Operating income decreased 31.8 billion yen, in comparison to the same period last year, to operating loss of 2.7 billion yen. Ordinary income fell 34.4 billion yen to ordinary loss of 10.4 billion yen. In addition to these factors, Kobe Steel posted an extraordinary loss on the write-down of investments in securities. As a result, net income went down 42.0 billion yen to net loss of 32.2 billion yen.

Full reports see here:
http://www.kobelco.co.jp/english/ir/library/fncl_results/2012/__icsFiles/afieldfile/2012/07/30/120730.pdf