Japan's second-largest steelmaker JFE Holdings Co. has announced its consolidated financial results for the first nine months of the financial year 2016-17 ended December 31.
In the first nine months of the financial year 2016-17, JFE Holdings recorded a net profit of JPY 36.50 billion ($322.13 million), compared to a net profit of JPY 39.89 billion in the same period of the previous financial year. The company's net sales amounted to JPY 2.31 trillion ($20.40 billion) in the given year, down from JPY 2.54 trillion in the previous year, while its operating profit declined to JPY 36.42 billion ($321.48 million), down 51.2 percent year on year.
Meanwhile, in the given period, JFE Steel's consolidated crude steel output increased to 22.8 million mt, up 2.4 percent year on year. In the full financial year, the company expects to produce 30.5 million mt of crude steel.
The company stated that, in the steel business, demand in Japan is forecast to continue recovering mainly in the automobile and construction sectors. In overseas markets, selling prices have been increasing to some extent but are not expected to make a full recovery because demand remains sluggish in the energy industry. Meanwhile, a surge in coking coal prices and other raw material prices in the second half of the current fiscal year is forecast to push up steelmaking costs significantly. The company said it will work hard to gain the understanding of customers regarding plans to raise selling prices.