Kobe Steel Limited has revised its consolidated forecast for fiscal 2011 from the previous forecast made on October 31st 2011 and its non consolidated forecast for fiscal 2011 from the previous forecast made on July 28th 2011, due to recent trends in its business performance.
Revision to fiscal 2011 consolidated forecast
| | Net sales | Operating income | Ordinary income | Net income | Net income per share |
| Previous forecast (A) | 1,950,000 | 75,000 | 50,000 | 20,000 | JPY 6.66 |
| Current forecast (B) | 1.370,000 | 50,000 | 25,000 | -10,000 | -JPY 3.33 |
| Change (B-A) | -80,000 | -25,000 | -25,000 | -30,000 | |
| % change | -4.1% | -33.3% | -50.0% | ||
| FY2010 results | 1,858,574 | 124,550 | 89,082 | 52,939 | JPY 17.63 |
In JPY millions unless otherwise indicated
Revision to fiscal 2011 non consolidated forecast
| | Net sales | Ordinary income | Net income | Net income per share |
| Previous forecast (A) | 1,170,000 | -10,000 | 0 | JPY 0.00 |
| Current forecast (B) | 1,090,000 | -27,000 | -24,000 | -JPY 7.98 |
| Change (B-A) | -80,000 | -17,000 | -24,000 | |
| % change | -6.8% | |||
| FY2010 results | 1,090,103 | 28,127 | 30,345 | JPY 10.09 |
In JPY millions unless otherwise indicated
Reason for the Revision
In comparison to the previous forecast, the Kobe Steel Group anticipates an increasingly severe business environment with a slowdown in the world economy and the high yen taking root. Kobe Steel anticipates that the sales volume and prices of steel products in the Iron & Steel Business will be lower than projected in the previous forecast. In the Aluminum & Copper Business, Kobe Steel anticipates that the sales volume of aluminum rolled products and copper rolled products will also be lower than projected in the previous forecast.
In addition to these conditions, Kobe Steel incurred an extraordinary loss on the write-down of investments in securities in the third quarter. As a result, Kobe Steel projects a downward revision of its earnings forecast for the full fiscal 2011.
