The world's fourth biggest steelmaker Japanese-based Nippon Steel has announced its financial results for the first quarter ended June 30 of the financial year 2012-13, posting a net loss of JPY 87.5 billion ($1.11 billion) compared to a net profit of JPY 29.09 billion in the first quarter of the previous financial year.
In the given quarter, Nippon Steel's net sales decreased by 2.5 percent year on year to JPY 960.68 billion ($12.27 billion), while the company registered an operating loss of JPY 6.26 billion ($80.02 million), compared to an operating profit of JPY 38.6 billion in the corresponding quarter of the financial year 2011-12.
Nippon Steel stated that its crude steel production in the first quarter of FY 2012-13 slightly decreased to 8.29 million mt from 8.3 million mt in Q1 FY 2011-12. The steelmaking and steel fabrication business of the company recorded net sales of JPY 823.6 billion ($10.53 billion) in the given period.
Nippon Steel anticipates strong steel demand from the domestic construction, automobile and industrial machinery industries, while it expects strong export demand to Southeast Asia to continue.
The company attributed the net loss to the valuation losses on the impairment of investment securities totaling JPY 96.3 billion ($1.23 billion).