Japan’s top steelmaker Nippon Steel & Sumitomo Metal Corp on Friday booked a 4 percent fall in recurring profit for the April to September period because of rising costs and slower-than-expected output.
Recurring profit for the world’s third-biggest steelmaker by crude steel output was 151.5 billion yen ($1.34 billion) for the six months to Sept. 30, below157.6 billion yen in the same period a year earlier.
Nippon Steel stuck to its annual business profit forecast of 350 billion yen under International Financial Reporting Standards (IFRS). That compares with a consensus of 355.9 billion yen from 12 analysts, according to data from Refinitiv.
Japanese steelmakers are enjoying solid local demand from automakers and machinery manufacturers as well as the construction sector, which has been in full swing ahead of the 2020 Tokyo Olympics.
But natural disasters including one of the strongest typhoons to hit Japan in the past 25 years and glitches at some ageing facilities have prevented them from producing as much steel as planned.