Sumitomo Metal Industries, Ltd. (Sumitomo Metals) has revealed its estimate of the loss caused by the earthquake that hit eastern Japan on 11 March 2011. The impact on ordinary income was mainly caused by a decrease in sales as a result of production disruption in Kashima Steelworks. Sumitomo Metals’ consolidated ordinary income is estimated to be reduced by JPY 2 billion for the fiscal year ended 2011 March 31. The estimate of extraordinary loss caused by the earthquake is approximately JPY 60 billion for the fiscal year ended 31 March 2011. This amount includes the cost to restore damaged facilities, including the cost to be paid after 1 April 2011, impairment loss of fixed assets, and the loss caused by production disruption and reduced capacity utilization at Kashima Steelworks during March 2011.
