Kobe Steel sales up, profits down

Japan's Kobe Steel Group, parent company of Kobelco Cranes, has reported a 4% increase in consolidated net sales for the first nine months of fiscal 2011 (April to December 2011), with Yen 1,409 billion (US$ 18 billion), an increase of Yen 53.7 billion ($694 million) over 2010 figures for the same period. The increase was due, in part, to large orders for the company's machinery, natural resources and engineering businesses, as well as higher sales prices for steel.

Unit sales increased for Kobelco Cranes, with growth from overseas markets, including North America, Southeast Asia and the Middle East, domestic demand also increased owing to restoration work following the Great East Japan Earthquake. Sales were up 13.3% for the first nine months of fiscal 2011, compared to the same period in 2010, to hit 34.6 billion yen ($447 million).

The group saw strong demand in its machinery business, with an increase in the sale of compressors used in oil refining and petrochemical industries. Segment sales in the nine-month period up to December 2011 increased 8.2% in comparison to the same period in the previous year.