Nippon Steel Suffers Loss in H1 But Expects Recovery in H2
Japanese steel giant Nippon Steel Corp has reported a consolidated net loss of JPY 191,164 million for April-September 2020, as compared to a profit of JPY
38,750 million in April-September 2019. Company's net sales amounted to JPY 2.24 trillion, decreasing by 26.4 percent compared to net sales of JPY 3.05 trillion in the first half of the previous financial year, due to lower demand due to the coronavirus. Its crude steel output plunged 32% to 14.64 million tonnes.
However, Nippon Steel halved its business loss forecast for the year to March 31 and raised its annual crude steel output plan, helped by strong recovery in steel demand from automakers. Nippon Steel now expects a business loss of JPY 60 billion yen for this financial year, down from its August estimate of JPY 120 billion. The company also raised its annual crude steel output forecast to 32.7 million tonnes on a parent basis from 31.8 million tonnes, as a blast furnace in Kimitsu, eastern Japan would resume, as would another in Muroran in northern Japan, later this month. Nippon Steel Executive Vice President Katsuhiro Miyamoto told “Demand from automakers is in a steady recovery from the COVID-19 crisis although an appetite for capital expenditure by smaller companies has receded.”