Japan steelmaker JFE Holdings FY net profit rises 21%, beats expectations (updated)

JFE Holdings

07/05/2024 07:54

(Adds details in paragraph 1-6)
       TOKYO, May 7 (Reuters) - JFE Holdings  5411.T , the
parent company of Japan's second biggest steelmaker, on Tuesday
posted a 21.4% increase in net profit for the year ended in
March to 197.4 billion yen ($1.28 billion) thanks to higher
prices, beating analysts' forecasts.
    A LSEG poll of analysts expected JFE Holdings to post 194.90
billion yen in net profit. 
    JFE Holdings said it now forecasts net profit for the year
ending in March 2025 at 220 billion yen on higher-value-added
products and increase in sale prices.
    In particular, the company plans to expand sales of
electrical steel sheets for electric vehicles and steel plates
for offshore wind power equipment, capitalizing on Japan's
ongoing efforts to achieve a carbon-neutral economy by 2050. 
    In February, JFE Holdings announced an increase in steel
product sale prices by 10% on average from April to reflect
rising raw material costs and global inflation. 
    The company expects its non-consolidated steel production
this fiscal year at around 23.40 million tonnes, on par with
last year, saying that while activity in the auto sector at home
is expected to be robust, labour shortages and soaring materials
prices are seen continuing pushing back demand. 
    "Overseas, the supply/demand balance for steel products
continues to loosen and prices continue to stagnate owing to an
increase in exports, such as from China, where the real estate
sector is in a slump," JFE Holdings said. 
    ($1 = 154.5000 yen)

 (Reporting by Katya Golubkova; Editing by Christian
Schmollinger and Lincoln Feast)
 ((jekaterina.golubkova@thomsonreuters.com;))