Japanese steelmaker Kobe Steel Ltd (Kobe) has issued its financial results for the first quarter ended June 30 of the financial year 2013-14.
For the given period, Kobe Steel reported a net profit of JPY 18.72 billion ($191.24 million), compared to a net loss of JPY 32.22 billion in the same quarter of the previous financial year. The company's consolidated net sales revenues for the first quarter were JPY 418.62 billion ($4.27 billion), down 3.6 percent year on year.
In the first quarter of the current financial year, Kobe Steel's sales in its iron and steel segment declined by 3.4 percent to JPY 185.7 billion ($1.9 billion). The sales volume of steel products increased compared to the same period last year as Kobe Steel steadily addressed overseas demand. Demand was recovering in the domestic automotive sector, and the export environment improved owing to the strong performance overseas, mainly in the US, and the correction in the strength of the yen.
Kobe Steel produced 1.88 million mt of crude steel in the first quarter, down 13.25 percent year on year. Kobe's steel product sales volume in the given period increased by seven percent to 1.53 million mt, compared to the first quarter of the previous financial year.
Additionally, Kobe Steel has made assumptions on uncertain factors including prices for steel raw materials and sales prices for steel products. Taking these assumptions into consideration, Kobe Steel anticipates higher consolidated net sales, operating income and ordinary income in the first half and the full financial year.