The world's second biggest steelmaker Japan-based Nippon Steel & Sumitomo Metal Corp. (NSSMC) has announced its financial results for the third quarter ending December 31 of the financial year 2012-13, posting a net profit of JPY 24.7 billion ($265 million). In the given period the company’s net sales amounted to JPY 1.154 trillion ($12.46 billion). The company forecasts a net profit of JPY 10.3 billion ($111 million) for the fourth quarter. NSMMC expects to post a net loss of JPY 140 billion ($1.51 billion) for the full financial year despite posting a profit for Q3 and the positive outlook for the fourth quarter.
Meanwhile, in the April-December period of FY 2012-13 NSSMC posted a net loss of JPY 151.95 billion ($1.64 billion). In the given period, NSSMC's net sales amounted to JPY 3.072 trillion ($40.3 billion), while the company registered an operating loss of JPY 5.97 billion ($64 million).
According to company’s statement, in the April-December period of current financial year the high level inflow of steel from South Korea and China caused a deterioration in the Japanese steel market. NSSMC stated that domestic steel demand from the manufacturing industry declined, especially in the automotive, shipbuilding, industrial machinery and other manufacturing sectors, although steel demand from civil engineering and construction was supported by reconstruction and disaster prevention projects. NSSMC stated that, despite market conditions, its steelmaking and steel fabrication segment recorded net sales of JPY 2.65 trillion ($28.6 billion) in the period in question.
Meanwhile, in the third quarter of FY 2012-13 NSSMC produced 11.01 million mt of crude steel, compared to 11.16 million mt in the corresponding quarter of the previous financial year. NSSMC expects to produce 45.9 million mt of crude steel in the full financial year.
In October 2012 Japanese steelmakers Nippon Steel and Sumitomo Metals merged to establish the world’s second biggest steelmaker Nippon Steel & Sumitomo Metal Corp. with a targeted global steelmaking capacity of 60-70 million mt.