Japan's JFE Holdings sees 2023/24 profit up on auto sector recovery

JFE Holdings

08/05/2023 09:00

TOKYO, May 8 (Reuters) - Japan's second-biggest
steelmaker JFE Holdings Inc  5411.T  plans to post a 17%
increase in current fiscal year's net profit to 190 billion yen
($1.4 billion), expecting stronger steel demand thanks to
recovery in auto sector, it said on Monday. 
    JFE saw a 44% decline in 2022/23 fiscal year net profit to
162.6 billion yen as its crude steel output fell to 25.5 million
tonnes from 27.3 million tonnes a year before hit by weaker
demand both in Japan and abroad amid rising costs and A shortage
of semiconductors essential to the auto sector.  
    The average selling price increased to 130,800 yen per
tonne, up from 103,700 yen a year earlier, the company said.
    This year, JFE said it sees improving demand for steel
products in Japan thanks to a recovery in the automotive sector
as supplies of semiconductors and other components improve.
Overseas demand should be driven by China lifting its zero-COVID
policy, it said. 
    As a result, 2023/24 fiscal year's net profit should rise by
17% to 190 billion yen, JFE forecast on Monday. 

($1 = 134.9200 yen)

 (Reporting by Katya Golubkova, Editing by Louise Heavens)
 ((ekaterina.golubkova@thomsonreuters.com;))