Japan-based Tokyo Steel has announced its interim consolidated financial results for the first quarter ending June 30 of the fiscal year 2024-25.
In the given quarter, the company reported a net profit of JPY 3.73 billion ($25.26 million), compared to a net profit of JPY 6.56 billion in the same quarter of the previous financial year, while its sales revenues amounted to JPY 73.86 billion ($500.24 million), declining by 21.4 percent year on year. In addition, Tokyo Steel’s operating profit came to JPY 4.77 billion ($32.34 million), decreasing from an operating profit of JPY 9.69 billion recorded in the same quarter of last year.
In the third quarter, the company produced 851,000 mt of steel, increasing by 2.2 percent year on year, while its total steel sales amounted to 786,000 mt, down by 9.6 percent year on year. The company stated that, even if the quarterly performance fell slightly short of the first estimations, it was largely in line with expectations.
In the meantime, the company expects its net profit to amount to JPY 11 billion for the financial year 2025-26, while its sales revenues and operating profit are forecast to total JPY 293.5 billion and JPY 16.1 billion, respectively.
Tokyo Steel expects the challenging market conditions triggered by protectionist measures to persist and demand to improve much later. The company shared its concerns that the price reduction of their products in the first quarter will be reflected in future shipments and that the steel business will remain challenging.