November 7, 2016
Overview
While we made efforts to raise our product prices to viable levels, sales for the first half only totaled ¥251.7 billion (down ¥25.0 billion year-on-year) due to declines in market prices of raw materials.
In terms of earnings, such factors as a slower-than-usual restart of operations following the scheduled outage in May at Kure Works and the inventory valuation loss depressed ordinary income to ¥1.0 billion (down ¥4.4 billion year-on-year) and ordinary income excluding such valuation loss to ¥7.0 billion (down ¥3.4 billion on the same basis).
Stainless steel shipments showed signs of picking up and following rises in market prices of raw materials, we raised our prices of Ni-containing stainless products by ¥10,000/ton effective with August contracts. However, ordinary loss of the stainless steel sector for the first half stood at ¥3.5 billion (improved by ¥0.5 billion y-o-y) and ordinary loss excluding the inventory valuation came to ¥0.0 billion (improved by ¥1.0 billion on the same basis).
(Billions of yen)
No | FY2017 | FY2016 1st half (Actual) d | FY2017 1st half (Previous forecast) e | ||||
1Q (Actual) a | 2Q (Actual) b | 1st half (Actual) c | |||||
Net sales | 1 | 119.4 | 132.3 | 251.7 | 276.7 | 252.0 | |
Operating income | 2 | 0.2 | 4.0 | 4.2 | 6.3 | 2.5 | |
Ordinary income | Ordinary steel / Special steel | 3 | 1.2 | 3.3 | 4.5 | 9.4 | 4.0 |
Stainless steel | 4 | (2.5) | (1.0) | (3.5) | (4.0) | (6.0) | |
Total | 5 | (1.3) | 2.3 | 1.0 | 5.4 | (2.0) | |
Profit attributable to owners of parent | 6 | (1.5) | 1.5 | 0.0 | 2.0 | (3.5) |
Difference | ||
(ⅰ) c-d | (ⅱ) b-a | (ⅲ) c-e |
(25.0) | 12.9 | (0.3) |
(2.1) | 3.8 | 1.7 |
(4.9) | 2.1 | 0.5 |
0.5 | 1.5 | 2.5 |
(4.4) | 3.6 | 3.0 |
(2.0) | 3.0 | 3.5 |
Inventory evaluation | Ordinary steel / Special steel | 7 | (1.5) | (1.0) | (2.5) | (2.0) | (1.5) |
Stainless steel | 8 | (1.5) | (2.0) | (3.5) | (3.0) | (5.5) | |
Total | 9 | (3.0) | (3.0) | (6.0) | (5.0) | (7.0) |
(0.5) | 0.5 | (1.0) |
(0.5) | (0.5) | 2.0 |
(1.0) | 0.0 | 1.0 |
No | FY2017 | FY2016 1st half (Actual) d | FY2017 1st half (Previous forecast) e | ||||
1Q (Actual) a | 2Q (Actual) b | 1st half (Actual) c | |||||
Crude steel production (10,000tons) | Ordinary steel / Special steel | 1 | 68 | 79 | 147 | 158 | 151 |
Stainless steel | 2 | 18 | 17 | 35 | 34 | 36 | |
Total | 3 | 86 | 96 | 182 | 192 | 187 | |
Sales volume (10,000tons) | Ordinary steel / Special steel | 4 | 70 | 79 | 149 | 150 | 150 |
Stainless steel | 5 | 12 | 15 | 27 | 25 | 28 | |
Total | 6 | 82 | 94 | 176 | 175 | 178 | |
Average sales price of steel products(1,000yen/tons) | 7 | 109 | 106 | 108 | 122 | 107 | |
Export ratio(monetary basis;%) | 8 | 15 | 15 | 15 | 16 | 15 | |
Export exchange rate(yen/US$) | 9 | 108 | 102 | 105 | 122 | 106 |
Difference | ||
(ⅰ) c-d | (ⅱ) b-a | (ⅲ) c-e |
(11) | 11 | (4) |
1 | (1) | (1) |
(10) | 10 | (5) |
(1) | 9 | (1) |
2 | 3 | (1) |
1 | 12 | (2) |
(14) | (3) | 1 |
(1) | 0 | 0 |
(17) | (6) | (1) |
Nisshin Steel Co. Ltd. published this content on 22 November 2016 and is solely responsible for the information contained herein.
Distributed by Public, unedited and unaltered, on 22 November 2016 08:03:10 UTC.
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