Nippon Steel, JFE set for record profits: paper

TOKYO (Reuters) - Japan's top two steel makers, Nippon Steel Corp. (5401.T) and JFE Holdings Inc. (5411.T), are expected to report record group profits for the business year ending in March 2008, the Nikkei daily said on Saturday.

Pre-tax profit at Nippon Steel, the world's second-biggest steel maker, is set to rise 2 percent to slightly more than 600 billion yen ($5.05 billion), a record for a fourth straight year.

JFE, enjoying brisk sales of high-grade steel to car makers, is projected to log a pre-tax profit of 520 billion yen, also up 2 percent, the Nikkei said.

JFE will probably raise its dividend for the half-year ending on September 30 to 60 yen, up 10 yen from a year earlier, the newspaper added.

A revision in tax rules will result in the two companies booking 28-30 billion yen more in depreciation costs, but that will probably be offset by cuts in spending and growth in sales.

Apart from a rise in steel demand from car makers, the companies are also expected to have benefited from higher demand from shipbuilders and equipment manufacturers.

($1=118.71 Yen)