Japan Steel Works’ Parts Orders May Fall 40% on Fukushima
Japan Steel Works Ltd. (5631), a maker of nuclear reactor containment vessels, said orders this fiscal year may fall short of its previous forecast by 40 percent after the Fukushima nuclear accident in March curbed demand.
Orders for parts used in nuclear stations and power plants will likely be 41.1 billion yen ($502 million) for the year through March 2012, the Tokyo-based company said today in a presentation. That’s below the 68.5 billion yen the company forecast for the period in May a year earlier.
Japan’s record earthquake and tsunami devastated coastal areas of northern Japan and crippled Tokyo Electric Power Co.’s Fukushima Dai-Ichi nuclear plant in the worst nuclear crisis since Chernobyl. The March 11 accident prompted governments to reconsider the future of atomic energy, hampering efforts by companies to sell nuclear reactors and prompting a 27 percent drop in the value of the shares of Japan Steel Work.
“The outlook is unclear” after the earthquake and the accident at the nuclear plant, President Ikuo Sato told analysts and investors today.
Japan Steel Works shares slid 2 percent to 597 at the 3 p.m. trading close on the Tokyo Stock Exchange.
Japan Steel Works owns the world’s only plant capable of producing the central part of a large-size reactor’s containment vessel in a single piece, which reduces radiation risk. Combined sales and orders at power and nuclear-related divisions for the current year will likely total 93.3 billion yen, half of which will account for nuclear-related operations, Sato said.
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