The world's fourth biggest steelmaker Japanese-based Nippon Steel has announced its financial results for the first nine months (April-December) of the fiscal year 2011-12, posting a net loss of JPY 1.25 billion ($16.26 million).
In the given period, Nippon Steel increased its net sales by 1.5 percent year on year to JPY 3.06 trillion ($39.6 billion), while its operating profit dropped to JPY 82.15 billion ($1.06 billion), down by 46 percent year on year.
Nippon Steel has lowered its net sales forecast to JPY 4.05 trillion ($52.5 billion) and its operating profit forecast to JPY 70 billion ($907.36 million) for the full financial year.
Nippon Steel stated that its crude steel production in the first nine months declined by 3.9 percent year on year to 26.57 million mt, resulting in a decrease in steel shipments. The steelmaking and steel fabrication business of the company recorded net sales of JPY 2.6 trillion ($34.23 billion) in the given period.
According to Nippon Steel's statement, domestic demand increased during the first nine months of the fiscal year as a result of increasing construction activity in the aftermath of the earthquake which hit Japan in March 2011, while export demand declined, particularly to East Asia, as a consequence of the flooding in Thailand.