Nippon Steel & Sumitomo Metal Corp : Announcement of the Reversal of Loss on Valuation of Investments in Securities in the Third Quarter of the Fiscal Year Ended March 31, 2013
January 07, 2013 at 01:51 pm IST
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January 7, 2013
For Immediate Release
Company name: Nippon Steel & Sumitomo Metal Corporation
Representative: Shoji Muneoka, Chairman and CEO
Code number: 5401 (Tokyo, Osaka, Nagoya, Fukuoka, Sapporo stock exchanges) Contact: Nozomu Takahashi, General Manager, Public Relations Center
(Telephone: 81-3-6867-2130)
Announcement of the Reversal of Loss on Valuation of Investments in Securities in the Third Quarter of the Fiscal Year Ending March 31, 2013
Nippon Steel & Sumitomo Metal Corporation reported special losses due to impairment of the valuation of investments in securities in the second quarter of the fiscal year ending March 31, 2013, on certain available-for-sale securities among its holdings classified within "other investment securities," which had shown substantial declines in market value. However, during the third quarter of the fiscal year ending March 31, 2013, the prices of certain of these securities were recognized to have recovered. Accordingly, the Company announces that it has made a reversal of a portion of these losses on the valuation of securities previously recognized.
1. Loss on Valuation of Investments in Securities in the Third Quarter of the Fiscal Year
Ending March 31, 2013
(100 Millions of yen)
Consolidated basis
Non- Consolidated basis
(A) Total amount of loss on valuation of investment securities booked in the third quarter of fiscal 2012(October 1 to December 31, 2012) (a-b)
(230)
(This means a reversal of losses)
(229) (This means a reversal of losses)
(a) Total amount of loss on valuation of investment securities booked in the third quarter of fiscal 2012
(April 1 to December 31, 2012)
12
11
(b) Total amount of loss on valuation of investment securities booked in the first half of fiscal 2012
(April 1 to September 30, 2012)
242
241
Notes:
1. The full reversal method (adding back the credited reserve amount in full to the income in the following period) is used for the valuation of securities on a quarterly basis.
2. The Company closes its accounts on March 31 each year.
1
Ratios to Net Assets, Ordinary Income, and Net Income
Nippon Steel Corporation is one of the Japanese largest iron and steel groups. Net sales break down by activity as follows:
- manufacturing of steel products (88.5%): long steel, flat steel, rails, sheets, iron bars, tubular products, etc.;
- engineering and construction services (4%): design, development and construction of offshore structures, infrastructures and environmental systems;
- technologic services (3.9%);
- manufacturing of chemical product (3.6%): primarily raw materials and iron and steel by-products (coal, coke, tar, etc.).
Net sales are distributed geographically as follows: Japan (60.2%), Asia (22.8%) and other (17%).
Nippon Steel & Sumitomo Metal Corp : Announcement of the Reversal of Loss on Valuation of Investments in Securities in the Third Quarter of the Fiscal Year Ended March 31, 2013