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Dow Jones Newswires: Tokyo Steel Manufacturing shares jump on strong earnings, share buyback

Tokyo Steel Manufacturing Co. shares

rose sharply Monday morning after the company posted a sharp rise in fiscal-year net profit and announced a share buyback.

The shares were recently 8.4% higher at 1,298 yen after rising as much as 9.1% earlier.

Tokyo Steel said after Friday’s market close that net profit for the year ended March soared to Y31.94 billion ($248.5 million) from Y5.89 billion.

Revenue surged 92% to Y270.88 billion on higher steel prices and a fiscal stimulus-driven recovery in steel demand, it said.

Tokyo Steel, which uses electric furnaces to recycle steel scrap, said it wants to take advantage of growing demand for low-carbon-footprint products and projected a further 48% rise in revenue in the year that began in April.

The company said it wants to cut costs but projected a 25% drop in net profit for this fiscal year, citing higher prices of raw materials.

Tokyo Steel also said it will buy back up to Y3.0 billion of its own shares in 2022.

The Topix subindex for steelmakers was recently 2.4% lower and the Nikkei Stock Average

was down 2.0%.

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