The world's second biggest steelmaker Japan-based Nippon Steel & Sumitomo Metal Corp. (NSSMC) has announced its financial results for the full financial year 2013-14 ended March 31, posting a net profit of JPY 242.75 billion ($2.4 billion), compared to a net loss of JPY 124.5 billion in the previous financial year. In the financial year 2013-14, the company's net sales amounted to JPY 5.5 trillion ($54.05 billion), increasing by 25.7 percent year on year.
According to NSSMC, domestic steel demand increased in the civil engineering and construction fields on continuing firm reconstruction demand and economic policies showing their full effects. Demand from the manufacturing industry also grew on the recovery in capital investment and an upturn in business confidence. Steel exports continued showing signs of recovery supported by improving economic conditions overseas and the yen adjustment, but market conditions for steel materials overseas remained severe amid ongoing stagnant demand for steel materials, caused by persistently strong supply pressure from Chinese and South Korean steelmakers.
During the financial year 2013-14, NSSMC's steelmaking and steel fabrication segment recorded net sales of JPY 4.9 trillion ($48.2 billion), up 28.7 percent year on year.
Meanwhile, in the given period, NSSMC produced 45.7 million mt of crude steel, up 4.9 percent, while the company's steel product shipments amounted to 42.02 million mt, increasing by 2.56 percent, both year on year.
NSSMC said that it is unable to forecast reasonably accurate earnings estimates for the financial year 2014-15 results due to several factors, including the fact that price trends for primary raw materials and steel material products are uncertain.