The world's second biggest steelmaker Japan-based Nippon Steel & Sumitomo Metal Corp. (NSSMC) has announced its financial results for the first quarter ended June 30 of the financial year 2016-17, posting a net loss of JPY 14.64 million ($139,839), compared to the net profit of JPY 72.73 million recorded in the first quarter of the previous financial year. In the given period, the company's net sales amounted to JPY 1.05 trillion ($10 billion), down 16.9 percent compared to the corresponding period of the previous year.
During the April-June period, NSSMC's steelmaking and steel fabrication segment recorded net sales of JPY 927 billion ($8.85 billion), falling by 16.45 percent year on year.
Meanwhile, in the given period, NSSMC produced 11.16 million mt of crude steel, up 2.5 percent, while the company's steel product shipments amounted to 9.6 million mt, falling 2.5 percent, both year on year.
NSSMC stated that in the first half of the current financial year it expects domestic steel demand to decline year on year but demand in the construction and automotive sectors is likely to improve from the first to the second quarter. Overseas steel demand is projected to remain flat overall, as a moderate recovery in ASEAN countries will be offset by the persistent decline in local demand in China.
For the first half of the financial year 2016-17, the company is forecasting consolidated net sales of JPY 2.2 billion and aims to achieve a net profit.