Japanese steelmaker JFE's profit up 13% on higher prices

JFE Holdings

06/02/2024 12:18

TOKYO, Feb 6 (Reuters) - JFE Holdings  5411.T , Japan's
second-biggest steelmaker, posted a 13.2% rise in nine-month net
profit on Tuesday, thanks to higher prices and lower fixed costs
due to a restructuring.
    JFE reported a profit of 162.9 billion yen ($1.1 billion) in
the nine months to the end of December 2023, compared with 143.9
billion yen during the same period a year earlier.
    The steelmaker stuck to its full-year profit forecast
through end-March of 190 billion yen, slightly below the 197
billion mean estimate in a poll of 13 analysts compiled by LSEG.
    "In Japan, activity in the automotive sector is improving
while steel demand remained under pressure in civil engineering
and construction sector due to labour shortages and soaring
material costs," JFE Executive Vice President Masashi Terahata
told a news conference.
     Terahata also expressed concern over slack demand in the
world's biggest steel consumer China and rising Chinese exports.
     "China's economic stimulus measures are not expected to
lead to a recovery in steel demand there until after Chinese New
Year," he said.
    JFE also said that Yoshihisa Kitano, currently serving as
the president of its key unit, JFE Steel, will assume the role
of president at JFE Holding with effect from April 1, succeeding
its current president, Koji Kakigi.
    Masayuki Hirose, an executive vice president at JFE Steel,
is set to take over from Kitano as president at the steel unit.
($1 = 148.3900 yen) 

 (Reporting by Yuka Obayashi; Editing by Alexander Smith)
 ((Yuka.Obayashi@thomsonreuters.com; +813-6441-1798; Reuters
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