Kobe Steel posts net profit for Apr-Dec, forecasts better earnings amid auto demand recovery

Friday, 05 February 2021 15:29:05 (GMT+3)   |   Istanbul

Japanese steelmaker Kobe Steel Ltd has issued its financial results for the first nine months ended December 31 of the fiscal year 2020-21.

For the given period, Kobe Steel has reported a net profit of JPY 3.81 billion ($36.18 million), decreasing from the net profit of JPY 7.21 billion recorded in the first nine months of the previous financial year. The company’s consolidated net sales revenues for the first nine months of the current financial year amounted to JPY 1.21 trillion ($11.49 billion), falling by 12.3 percent year on year. Both sales and profits decreased significantly year on year due to a sharp drop in demand in the first half of the year amid the impact of the coronavirus pandemic although signs of a recovery are seen.     

Kobe Steel produced 4.13 million mt of crude steel in the period in question, down 17.4 percent year on year. Kobe’s steel product sales volume in the given period declined by 16.3 percent to 3.38 million mt, compared to 4.04 million mt recorded in the first nine months of the previous financial year.

According to Kobe Steel, its steel exports declined by 6.8 percent year on year to 950,000 mt, while its domestic sales fell by 19.8 percent year on year to 2.43 million mt. The company’s main material and export prices fell.

Kobe Steel forecasts its earnings will increase from the previous forecast owing to a recovery of global demand in the automotive sector. According to the company, its production and sales will improve compared to the previous forecast.  

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