Japan-based Tokyo Steel has announced its interim consolidated financial results for the nine-month period ending December 31 of the fiscal year 2025-26.
In the given period, the company reported a net profit of JPY 9.40 billion ($61.13 million), compared to a net profit of JPY 16.86 billion in the same period of the previous financial year, while its sales revenues amounted to JPY 201.85 billion ($1.31 billion), declining by 20.8 percent year on year. In addition, Tokyo Steel’s operating profit came to JPY 8.17 billion ($53.14 million), decreasing from an operating profit of JPY 23.51 billion recorded in the same period of the previous year.
In the first nine months of the given fiscal year, the company produced 2.31 million mt of steel, decreasing by 5.4 percent year on year, while its total steel sales totaled 2.18 million mt, down by 9.3 percent year on year.
The company stated that it expects the business environment to remain more challenging than previously anticipated, amid ongoing uncertainty in overseas steel markets stemming from China’s sluggish economy and the resulting surge in steel exports to record levels. The company added that, in the domestic market, labor shortages and rising construction costs have caused construction delays and revisions to project plans, which have in turn had a negative impact on demand for construction materials.
Accordingly, the company has revised its net profit expectation downwards to JPY 8.8 billion for the financial year 2025-26, while its sales revenues and operating profit are forecast to amount to JPY 272 billion and JPY 9.8 billion, respectively.