Nippon Steel & Sumitomo Metal Corp reported that its profit attributable to owners of parent for the first quarter of fiscal 2018 was 96.35 billion yen, up 35 percent from 71.3 billion yen in the prior year. Earnings per share rose to 109.17 yen from 80.84 yen last year. However, operating profit declined 27.6 percent to 48.20 billion yen from 66.54 billion yen in the prior year. Consolidated net sales for the quarter rose 6.3 percent to 1.44 trillion yen from 1.36 trillion yen last year.
In the Steelmaking and Steel Fabrication segment, domestic steel demand remained firm, especially shipments to the automotive and industrial machinery sectors. Overseas steel demand as a whole was on a rising trend. In the domestic and overseas steel markets, prices were at a generally high level against a background of solid demand.
In such an environment, the segment increased sales compared to the previous year but recorded a decline in profit due to a difference in inventory devaluation and despite NSSMC’s efforts to improve costs and to secure appropriate sales prices for continuous supply; this includes adjusting steel product prices, given surges in prices of some auxiliary materials such as scrap and alloy, other material procurement costs, and distribution costs.
The Steelmaking and Steel Fabrication segment recorded net sales of JPY 1,283.4 billion and ordinary profit of JPY 81.6 billion.
Crude Steel Production
(Consolidated basis (The Company and its domestic consolidated subsidiaries))
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Steel Products Shipment
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Including Nippon Steel & Sumikin Koutetsu Wakayama Corporation