Tokyo Steel Manufacturing shares
rose sharply Monday morning after it posted strong first-quarter results and raised full-year profit guidance.
The shares were recently 21% higher at the upper end of the day’s trading range of 1,703 yen.
Tokyo Steel said Friday after market close that net profit climbed 30% from a year earlier to Y8.845 billion ($62.4 million) for the quarter ended June 30.
First-quarter revenue increased 13% to Y102.755 billion. The steelmaker said shipping volume increased and selling prices were higher than previously anticipated, as demand remained strong for private capital spending.
Meanwhile, the company was able to procure iron scrap at lower-than-estimated prices and to reduce fixed costs thanks to improvement in capacity utilization, it said.
Tokyo Steel raised its net profit forecast for the fiscal year ending March 2024. It expects net profit to drop 22% to Y24.00 billion, up from its previous projection of Y21.00 billion.