Japanese steelmaker Kobe Steel Ltd has issued its financial results for the fiscal year 2019-20 ended March 31.
For the given period, Kobe Steel has reported a net loss of JPY 68 billion ($633.38 million), increasing from the net profit of JPY 35.9 billion recorded in the previous financial year. The company's consolidated net sales revenues for the full financial year amounted to JPY 1.87 trillion ($17.42 billion), falling by 5.2 percent year on year.
Kobe Steel produced 6.5 million mt of crude steel in the period in question, down 5.9 percent year on year. Kobe's steel product sales volume in the given period declined by 5.7 percent to 5.3 million mt, compared to 5.62 million mt recorded in the financial year 2018-19.
According to Kobe Steel, although its steel exports remained almost stable compared to the previous year, domestic sales fell by 7.5 percent year on year. Sales prices were similar year on year, as a portion of the prices rose in Japan on account of higher main raw material prices and other factors, while export prices decreased due to a softening in the market.
Kobe Steel stated that some of its overseas plants, which were shut down under government orders, have subsequently resumed operation. All the company’s plants in Japan and overseas are now carrying on operations except for Singapore. However, the company noted that the production and orders at some plants have declined and this situation may impact on future business results.
Kobe Steel said that it has taken some emergency measures until the full impact can be determined such as maximum control on spending, implementation of detailed fund management, and freezing of expenses and expenditures as well as of some capital investments. The company aims to improve its profitability by JPY 20 billion.