Japan's Kobe Steel raises FY profit forecast by 38% on higher prices

Kobe Steel

09/02/2023 09:34

Feb 9 (Reuters) - Japanese steelmaker Kobe Steel Ltd
 5406.T  raised its full year net profit forecast by 38% on
Thursday to 62 billion yen ($473 million) as it expects higher
metal prices to offset lower sales volumes, it said in a
statement. 
    "Steel metal spreads are expected to improve significantly
from the previous forecast due to progress in improving selling
prices, lower prices of main raw materials," the company said. 
    Kobe Steel, Japan's third-biggest steelmaker, forecasts its
sales at 2.49 trillion yen in the fiscal year ending on March
31, down 2% from its November prediction, mainly due to a
decline in overseas car production amid continued shortage of
chips.  
    On Thursday, Kobe Steel posted a 12% drop in April-December
net profit to 47.5 billion yen, as margins for aluminum rolled
products, advanced materials, and construction machinery
deteriorated from a year before on rising energy costs. 
    Yet Kobe Steel's sales for the nine-month period ending on
Dec 31 were 20% higher at 1.8 trillion yen thanks to stronger
steel prices, it said. The company plans to pay 40 yen per share
in full-year dividend, flat from a year before. 
    Japan's top steelmaker Nippon Steel Corp  5401.T  on
Thursday posted a 2% increase in April-December net profit to
517 billion yen and said it would pay a record-high full-year
dividend of 180 yen per share.
    ($1 = 130.9600 yen)
 (Reporting by Katya Golubkova
Editing by Bernadette Baum)
 ((ekaterina.golubkova@thomsonreuters.com))