Kobelco Reports Steel Segment Results for Q1 of FY2021
Japanese steelmaker Kobe Steel swung back to profits during the quarter ending June 2021, helped by an increase in steel sales as well as a rise in price of the metal. Kobe Steel reported an operating profit of JPY 24.8 billion during the quarter ending June 2021, as compared to an operating loss of JPY 19.8 billion in the same quarter last year. Net profit was JPY 18.9 billion during the quarter as compared to a net loss of JPY 13.1 billion in the same quarter last year. It said “Operating income increased due to an increase in sales volume and an improvement in inventory valuation despite a deterioration in metal spreads associated with the increase in raw material prices of steel products.”
The average sales price for steel received by the company also improved to JPY 90,700 per tonne, an increase of JPY 10,600 yen per tonne over the same quarter last year.
The company’s net sales for the quarter also improved significantly. For the quarter, Kobe Steel’s net sales were JPY 463.2 billion, almost 24% better than JPY 374.1 billion in the same quarter last year.