Japan’s largest steelmaker Nippon Steel has posted a 2% increase in April-December net profit to JPY 517 billion (USD 4 billion) on sales of JPY 5.7 trillion up 21%. Nippon Steel said “While overseas steel market is expected to stay sluggish going forward, by H2 FY2022 we aim to improve steel price spread by JPY 400 billion in annual basis compared to H2 FY2020 as we secure appropriate level of margin and improve order mix in direct contract-based sales which account for over half of our shipment.”Nippon Steel has updated forecast for FY2022 consolidated underlying business profit at JPY 690 billion, upward revision by JPY 60 billion from the previous guidance and remaining at the record-high level as last year, even in the prolonged sluggish business environment. However, Nippon Steel’s forecast for FY2022 consolidated business profit is unchanged at JPY 870 billion, as the forecast for total amount of inventory valuations etc is revised downward by JPY 60 billion due to fluctuations in raw material prices and forex rates.Nippon Steel said “The revenue and profit in FY2022 are expected to increase YoY due to robust sales in environment and energy sectors such as overseas marine business, waste to energy plants business and offshore wind power business. However, business profit outlook has been revised downward from the previous outlook, reflecting valuation losses for accounts receivable due to stronger yen. The revenue in FY2022 is expected to increase YoY due to increase in sales price reflecting depreciated yen and raw materials cost inflation. However, the business profit is expected to decrease YoY due to rapid slowdown in semiconductor market, S&D adjustment in needle coke market, calmed market prices of chemical products, etc and the outlook has been revised downward from the previous outlook. The revenue in FY2022 is expected to increase YoY, capturing needs for DX needs mainly from platformers and Nippon Steel as well, expanding provision of digital workplace solutions and implementing government projects. While G&A cost is also expected to increase due through medium-term growth measures, so does business profit outlook along with the increase in revenue.”
Japan’s largest steelmaker Nippon Steel has posted a 2% increase in April-December net profit to JPY 517 billion (USD 4 billion) on sales of JPY 5.7 trillion up 21%. Nippon Steel said “While overseas steel market is expected to stay sluggish going forward, by H2 FY2022 we aim to improve steel price spread by JPY 400 billion in annual basis compared to H2 FY2020 as we secure appropriate level of margin and improve order mix in direct contract-based sales which account for over half of our shipment.”Nippon Steel has updated forecast for FY2022 consolidated underlying business profit at JPY 690 billion, upward revision by JPY 60 billion from the previous guidance and remaining at the record-high level as last year, even in the prolonged sluggish business environment. However, Nippon Steel’s forecast for FY2022 consolidated business profit is unchanged at JPY 870 billion, as the forecast for total amount of inventory valuations etc is revised downward by JPY 60 billion due to fluctuations in raw material prices and forex rates.Nippon Steel said “The revenue and profit in FY2022 are expected to increase YoY due to robust sales in environment and energy sectors such as overseas marine business, waste to energy plants business and offshore wind power business. However, business profit outlook has been revised downward from the previous outlook, reflecting valuation losses for accounts receivable due to stronger yen. The revenue in FY2022 is expected to increase YoY due to increase in sales price reflecting depreciated yen and raw materials cost inflation. However, the business profit is expected to decrease YoY due to rapid slowdown in semiconductor market, S&D adjustment in needle coke market, calmed market prices of chemical products, etc and the outlook has been revised downward from the previous outlook. The revenue in FY2022 is expected to increase YoY, capturing needs for DX needs mainly from platformers and Nippon Steel as well, expanding provision of digital workplace solutions and implementing government projects. While G&A cost is also expected to increase due through medium-term growth measures, so does business profit outlook along with the increase in revenue.”
