NIPPON STEEL NISSHIN CO., LTD. August 1, 2016
Overview
Domestic steel inventories remained high partly due to supply chain disruptions caused by the 2016 Kumamoto Earthquake. Overseas, while the Chinese steel market recovered temporarily, their production and exports began to be aggressive again, leaving the future outlook uncertain.
Though we strove to keep our sales prices viable in some cases or improve them to such levels in others, declines in market prices of iron ore and nickel hampered our efforts. Sales totaled ¥119.4 billion (down ¥17.8 billion year on year).
Ordinary loss of ¥1.3 billion (down ¥3.1 billion year-on-year basis) was posted, partly with adverse developments including a slower-than-usual restart of operations following a scheduled outage at Kure Works and such external factors as losses in foreign exchange and inventory valuation. However, excluding the inventory valuation, ordinary income of ¥1.7 billion (down ¥2.6 billion year on year) was generated.
In the stainless sector, the market was generally dull. Even though we stayed with our sales policy to focus on profitability, such new negative elements as increases in imports driven by stronger yen emerged. Consequently, ordinary loss came to ¥2.5 billion (down ¥0.5 billion year-on-year) and ordinary loss excluding the inventory valuation stood at ¥1.0 billion (down
¥0.5 billion year-on-year).
（Billions of yen）
No | FY2017 1Q (Actual) a | FY2016 1Q (Actual) b | ||
Net sales | 1 | 119.4 | 137.2 | |
Operating income | 2 | 0.2 | 1.0 | |
Ordinary income | Ordinary steel / Special steel | 3 | 1.2 | 3.8 |
Stainless steel | 4 | (2.5) | (2.0) | |
Total | 5 | (1.3) | 1.8 | |
Profit attributable to owners of parent | 6 | (1.5) | 1.2 | |
Difference （ⅰ） a-b |
(17.8) |
(0.8) |
(2.6) |
(0.5) |
(3.1) |
(2.7) |
Inventory evaluation | Ordinary steel / Special steel | 7 | (1.5) | (1.0) |
Stainless steel | 8 | (1.5) | (1.5) | |
Total | 9 | (3.0) | (2.5) | |
(0.5) |
0.0 |
(0.5) |
No | FY2017 1Q (Actual) a | FY2016 1Q (Actual) b | ||
Crude steel production (10,000tons) | Ordinary steel / Special steel | 1 | 68 | 79 |
Stainless steel | 2 | 18 | 15 | |
Total | 3 | 86 | 94 | |
Sales volume (10,000tons) | Ordinary steel / Special steel | 4 | 70 | 74 |
Stainless steel | 5 | 12 | 12 | |
Total | 6 | 82 | 86 | |
Average sales price of steel products(1,000yen/tons) | 7 | 109 | 124 | |
Export ratio(monetary basis;%) | 8 | 15 | 17 | |
Export exchange rate(yen/US$) | 9 | 108 | 121 | |
Difference （ⅰ） a-b |
(11) |
3 |
(8) |
(4) |
0 |
(4) |
(15) |
(2) |
(13) |
Nisshin Steel Co. Ltd. published this content on 01 August 2016 and is solely responsible for the information contained herein.
Distributed by Public, unedited and unaltered, on 05 August 2016 08:10:05 UTC.
Original documenthttp://v4.eir-parts.net/v4Contents/View.aspx?template=ir_material_for_fiscal_ym&sid=26559&code=5413
Public permalinkhttp://www.publicnow.com/view/27D912AAA52AD64BB975AAA6B8CD23959E943D57
