Japanese steelmaker JFE Holdings Co. has announced its consolidated financial results for the first quarter ended June 30 of the financial year 2022-23.
In the first quarter, JFE Holdings recorded a net profit of JPY 85.01 billion ($638.51 million), compared to a JPY 63.1 billion net profit recorded in the same period of the previous fiscal year. The increase in profit was due to higher steel prices, offsetting the depreciation of the Japanese yen. The company’s net sales amounted to JPY 1.25 trillion ($9.41 billion), up 41.0 percent year on year.
Meanwhile, in the first quarter, JFE Steel’s consolidated crude steel output increased to 6.77 million mt, up by 2.7 percent year on year. The company’s shipments in the given period amounted to 5.54 million mt, up 5.3 percent year on year.
According to the company’s statement, the current business environment has been significantly worse than in the previous financial year due to the prolonged war between Russia and Ukraine. The supply-demand balance is expected to recover gradually. However, it will be necessary to monitor carefully the trend of steel production and steel demand in China, and the impact of auto production due to the shortage of parts.
The company expects sales revenues of JPY 2.61 trillion in the first half and sales revenues of JPY 5.37 trillion in the full financial year. The company’s crude steel production guidance for the full financial year stands at approximately 26 million mt.