Japanese steelmaker Kobe Steel Ltd (Kobe) has announced that it has revised its consolidated earnings forecast for the financial year 2015-16, ending March 31, 2016, from the previous forecast made on October 30, 2015, due to recent trends in its business performance.
Kobe Steel anticipates a downward revision of its earnings forecast for the financial year 2015-16. Accordingly, the company now expects a net loss of JPY 20 billion ($165.66 million) for the full financial year. The steelmaker has also revised its net sales forecast down to JPY 1.84 trillion ($15.24 billion) for the full financial year, decreasing from the previous forecast of JPY 1.87 trillion ($15.49 billion).In the given period, the company’s operating income is expected to amount to JPY 65 billion ($568.63 million), down from JPY 90 billion ($745.8 million) forecast in October.
Kobe Steel stated that, looking at income and losses, costs increased due to a worsening of the sales mix and higher maintenance costs to maintain stable production in the steel products business. The company anticipates that the losses related to investments in and loans to subsidiaries and associated companies will be posted as a nonconsolidated extraordinary loss, due to rapid deterioration in business conditions in the construction machinery business field in China.