Nippon Steel announced on the 7th that it expects its consolidated net profit (according to international accounting standards) for the fiscal year 2025 (ending March 2025) to fall 44% year-on-year to 310 billion yen, 30 billion yen lower than previously expected. This downward adjustment is mainly due to the decline in profits caused by the reduction in domestic and foreign steel shipments. In addition, the decline in prices of raw materials such as coking coal and iron ore has also brought losses in inventory assessments, further squeezing profits.
In terms of revenue, sales revenue is expected to decrease by 3% to 8.6 trillion yen, while operating profit is expected to drop by 23% to 670 billion yen. Compared with previous expectations, revenue and operating profit are reduced by 200 billion yen and 30 billion yen respectively. In addition, net profit is expected to be about 20% lower than the average market expectation (QUICK estimate is 371.5 billion yen).
The consolidated financial report for April to September 2024 released on the same day showed that the company’s sales revenue fell 1% year-on-year to 4.3797 trillion yen, while net profit decreased by 19% to 243.3 billion yen.
Among other giants in the steel industry, JFE Holdings released a forecast on the 6th that its consolidated net profit for fiscal 2025 will be 75 billion yen lower than previously expected, and is expected to be 130 billion yen, a year-on-year decrease of 34%.
