Japanese steel maker Kobelco announced that sales volume in April-June 2022 quarter decreased mainly in the steel products and in the construction machinery business, which was affected by a decrease in overall demand in China. Kobelco said “While coking coal prices rose sharply, steel metal spreads remained at the same level as the same period of the previous fiscal year due to improvement in sales prices. On the other hand, ordinary income increased by JPY 5.9 billion year on year to JPY 29.9 billion due to factors such as an increase in inventory valuation gains and compensation income related to the engine certification problem in North America in the construction machinery business.”April-June 2022 QuarterNet sales of JPY 210.3 billion, up JPY 42.7 billion YoYOrdinary Income of JPY 9.7 billion, down 0.1 JPY billion YoYCrude steel production of 1.59 million tonnes, down 0.07 million tonnes YoYSales volume of 1.26 million tonnes, down 0.10 million tonnes YoYSales price was JPY 126,500 per tonne, up JPY 35,800 per tonne YoYKobelco said “Compared to the previous forecast, steel metal spreads are expected to remain at the same level as the previous forecast. However, compared to the previous forecast, we anticipate a decline in sales volume in the materials and construction machinery businesses along with a delay in passing on increased procurement costs to sales prices in business segments other than steel. The FY 2022 full-year earnings forecast anticipates an ordinary income of 80.0 billion yen, with no change from the previous forecast, owing to an increase in inventory valuation gains, etc., but the outlook remains uncertain due to factors such as significant fluctuations in raw material prices and unpredictable automobile production trends. Going forward, we will steadily implement measures to improve earnings, including improving sales prices.”Kobelco added “Compared to the previous forecast, automobile production is expected to decrease due to further production cuts mainly in the H1 of FY 2022. A full-fledged recovery in automobile production is expected to be pushed back to the Q4 of fiscal 2022. In the financial year 2022-23, Kobe Steel’s crude steel production is expected to be about 6.5 million tonne. The company's sales volume is expected to amount to about 5.3 million tonne in the given year, due to the slow demand recovery in the automotive industry.”
Japanese steel maker Kobelco announced that sales volume in April-June 2022 quarter decreased mainly in the steel products and in the construction machinery business, which was affected by a decrease in overall demand in China. Kobelco said “While coking coal prices rose sharply, steel metal spreads remained at the same level as the same period of the previous fiscal year due to improvement in sales prices. On the other hand, ordinary income increased by JPY 5.9 billion year on year to JPY 29.9 billion due to factors such as an increase in inventory valuation gains and compensation income related to the engine certification problem in North America in the construction machinery business.”April-June 2022 QuarterNet sales of JPY 210.3 billion, up JPY 42.7 billion YoYOrdinary Income of JPY 9.7 billion, down 0.1 JPY billion YoYCrude steel production of 1.59 million tonnes, down 0.07 million tonnes YoYSales volume of 1.26 million tonnes, down 0.10 million tonnes YoYSales price was JPY 126,500 per tonne, up JPY 35,800 per tonne YoYKobelco said “Compared to the previous forecast, steel metal spreads are expected to remain at the same level as the previous forecast. However, compared to the previous forecast, we anticipate a decline in sales volume in the materials and construction machinery businesses along with a delay in passing on increased procurement costs to sales prices in business segments other than steel. The FY 2022 full-year earnings forecast anticipates an ordinary income of 80.0 billion yen, with no change from the previous forecast, owing to an increase in inventory valuation gains, etc., but the outlook remains uncertain due to factors such as significant fluctuations in raw material prices and unpredictable automobile production trends. Going forward, we will steadily implement measures to improve earnings, including improving sales prices.”Kobelco added “Compared to the previous forecast, automobile production is expected to decrease due to further production cuts mainly in the H1 of FY 2022. A full-fledged recovery in automobile production is expected to be pushed back to the Q4 of fiscal 2022. In the financial year 2022-23, Kobe Steel’s crude steel production is expected to be about 6.5 million tonne. The company's sales volume is expected to amount to about 5.3 million tonne in the given year, due to the slow demand recovery in the automotive industry.”
