Japan’s Kobe Steel raises annual profit forecast to record $840 million
4:24 am Tuesday, August 08th, 2023
TOKYO (Reuters) – Japan’s Kobe Steel raised its net profit forecast for the current fiscal year to a record high of 120 billion yen ($839 million) on expected higher selling prices and lower fuel costs, it said on Tuesday.
The forecast was increased by 20 billion yen from the previous estimate and versus 72.5 billion yen in the last fiscal year’s net profit posted by Kobe Steel, Japan’s third-biggest steelmaker.
Lower procurement costs should offset the impact of delayed demand recovery in the IT and semiconductor sectors and weaker Japanese automobile manufacturers’ overseas production as China’s electric vehicle output rises, the company said.
On Tuesday, Kobe Steel said its net profit in the first quarter of the current fiscal year was up by 21% to 25.4 billion yen.
It said stronger steel metal spreads and lower coking coal prices offset lower sales of steel and aluminium rolled products.
Its board of directors has decided to raise the dividend payout ratio target to around 30% of net profit from 15% to 25% now and to pay an interim dividend of 45 yen per share – resulting in a 90 yen annual dividend for the 2023 fiscal year.
Nippon Steel, Japan’s top steelmaker, last week posted a 23% drop in net profit in the first quarter of the 2023/2024 fiscal year, but raised its full-year forecast by 8% on higher-than-expected margins as raw materials prices fell.
($1 = 143.0200 yen)
(Reporting by Katya Golubkova; editing by Barbara Lewis)
