Japanese steel giant Nippon Steel Corporation has achieved a record-high business profit of JPY 938 billion since the integration in FY2012, almost reaching future milestone of JPY 1 trillion. It has reported net underlying profit of JPY 690 billion for the financial year 2021-22 ended 31 March 2022, as compared to a net loss of JPY 32.4 billion in the previous financial year. Nippon Steel's net sales amounted to JPY 6.8 trillion (USD 52.2 billion), increasing by 40.9% YoY as compared to net sales of JPY 4.8 trillion in the previous financial year. Nippon Steel produced 38.68 million tonnes of crude steel, up 17.2% YoY, while its steel product shipments amounted to 35.56 million tonnes, increasing by 13.9% YoY.Nippon Steel announce following initiatives for sustainable growth1. Establishment of further more profitable structure2. Steady implementation of production facility structural measures, regardless of short-term upturn in business environment---------------------------------------------Facilities terminated in 1H FY2021A. Upstream facilities in Kure Area,B. A series of upstream facilities in Wakayama Area,C. Titanium welded pipe production line in Kyushu Works Oita Area, etc.---------------------------------------------Facilities terminated in 2H FY2021A. Steel plate mill in Nagoya Works,B. 1CC, large shape mill, UO pipe mill in Kimitsu Area, etc----------------------------------------------Facilities to be terminated in FY2022A. Pickling line in East Nippon Works Kashima AreaB. Galvanizing and aluminizing line in Setouchi Works Hanshin Area (Sakai), etc3. Aggressive investments in strategic products and in cutting-edge facilities b remodeling of remaining facilities with sophisticated technology----------------------------------------------Additional investments in electrical steel sheet line for capacity increase and quality improvement. An additional investment is now under consideration on top of the already decided investment of JP 123 billion in order to respond to growing electrical steel sheet demand----------------------------------------------Construction of next-generation hot strip mill in Nagoya Works with investments of JPY 270 billion for 6 million tonne per year b FY 2026----------------------------------------------Major facilities to be put in place in FY2022A. Nagoya 3BF (relined)B. Hirohata EAF (newly constructed)Nippon Steel said that the following risk factors since last year are even exacerbated by Russia-Ukraine Conflict1) China's slowdown in economic growth2) Supply shortages, such as for semiconductors3) Greenflation that leads to the surge in prices of natural and energy resourcesYen's recent rapid depreciation that leads to the aggravation in the Nation's trade deficitSurge in coking coal price with violent fluctuation due to many countries' embargo on the imports of Russian coalSurge in iron ore price due to supply chain disruption caused by Russia-Ukraine ConflictSoaring steel prices especially in US and Europe markets due to the declined steel exports from Russia and UkraineNippon Steel said “The external environment is changing rapidly beyond economic rationality, and global outlook is extremely uncertain. Given that the outlook is extremely uncertain due to the war between Russia and Ukraine, it is difficult to produce reasonable calculations concerning earnings forecasts for the financial year 2022-23. Under this situation, Nippon Steel aims at realizing over JPY 600 billion underlying profit by taking initiatives such as continuous & radical effort to establish an optimal and profitable business structure and flexible response to the changes in global steel market supply & demand by shortening management cycles for passing on costs to quarter basis from half year basis.”
Japanese steel giant Nippon Steel Corporation has achieved a record-high business profit of JPY 938 billion since the integration in FY2012, almost reaching future milestone of JPY 1 trillion. It has reported net underlying profit of JPY 690 billion for the financial year 2021-22 ended 31 March 2022, as compared to a net loss of JPY 32.4 billion in the previous financial year. Nippon Steel's net sales amounted to JPY 6.8 trillion (USD 52.2 billion), increasing by 40.9% YoY as compared to net sales of JPY 4.8 trillion in the previous financial year. Nippon Steel produced 38.68 million tonnes of crude steel, up 17.2% YoY, while its steel product shipments amounted to 35.56 million tonnes, increasing by 13.9% YoY.Nippon Steel announce following initiatives for sustainable growth1. Establishment of further more profitable structure2. Steady implementation of production facility structural measures, regardless of short-term upturn in business environment---------------------------------------------Facilities terminated in 1H FY2021A. Upstream facilities in Kure Area,B. A series of upstream facilities in Wakayama Area,C. Titanium welded pipe production line in Kyushu Works Oita Area, etc.---------------------------------------------Facilities terminated in 2H FY2021A. Steel plate mill in Nagoya Works,B. 1CC, large shape mill, UO pipe mill in Kimitsu Area, etc----------------------------------------------Facilities to be terminated in FY2022A. Pickling line in East Nippon Works Kashima AreaB. Galvanizing and aluminizing line in Setouchi Works Hanshin Area (Sakai), etc3. Aggressive investments in strategic products and in cutting-edge facilities b remodeling of remaining facilities with sophisticated technology----------------------------------------------Additional investments in electrical steel sheet line for capacity increase and quality improvement. An additional investment is now under consideration on top of the already decided investment of JP 123 billion in order to respond to growing electrical steel sheet demand----------------------------------------------Construction of next-generation hot strip mill in Nagoya Works with investments of JPY 270 billion for 6 million tonne per year b FY 2026----------------------------------------------Major facilities to be put in place in FY2022A. Nagoya 3BF (relined)B. Hirohata EAF (newly constructed)Nippon Steel said that the following risk factors since last year are even exacerbated by Russia-Ukraine Conflict1) China's slowdown in economic growth2) Supply shortages, such as for semiconductors3) Greenflation that leads to the surge in prices of natural and energy resourcesYen's recent rapid depreciation that leads to the aggravation in the Nation's trade deficitSurge in coking coal price with violent fluctuation due to many countries' embargo on the imports of Russian coalSurge in iron ore price due to supply chain disruption caused by Russia-Ukraine ConflictSoaring steel prices especially in US and Europe markets due to the declined steel exports from Russia and UkraineNippon Steel said “The external environment is changing rapidly beyond economic rationality, and global outlook is extremely uncertain. Given that the outlook is extremely uncertain due to the war between Russia and Ukraine, it is difficult to produce reasonable calculations concerning earnings forecasts for the financial year 2022-23. Under this situation, Nippon Steel aims at realizing over JPY 600 billion underlying profit by taking initiatives such as continuous & radical effort to establish an optimal and profitable business structure and flexible response to the changes in global steel market supply & demand by shortening management cycles for passing on costs to quarter basis from half year basis.”
