May 9, 2016
Overview
Amid weak domestic demand and worsening export environment, domestic steel inventory remained high. We tailored our production and sales to actual demand so as to optimize the inventory. As a result, our crude steel output totaled 3.79 million tons and sales 3.58 million tons (down 190,000 and 230,000 tons respectively from the previous period).
While our current consolidated performance had sales of ¥547 billion and ordinary income of
¥6.2 billion (down ¥70.5 billion and ¥13.4 billion respectively from the previous period) mainly due to reduced sales volume and inventory valuation loss caused by falling raw materials prices, ordinary income with the inventory valuation loss excluded came to ¥19.7 billion (up
¥0.1 billion from the previous period) and the same earnings level as the previous period was maintained.
Our stainless steel business, negatively impacted by inventory valuation loss and lackluster performance of overseas subsidiaries, did not fare well, posting ordinary loss of ¥11 billion and ordinary loss excluding the inventory valuation loss of ¥2 billion (down ¥14.5 billion and
¥3 billion respectively from the previous period).
In addition, as our overseas investment companies had to record loss on devaluation of investments in securities due to temporary factors including declines in raw materials prices, profit attributable to owners of parent totaled ¥6.6 billion (down ¥23.5 billion from the previous period).
(Billions of yen)
No | FY2016 | FY2015 (Actual) c | |||
(Actual) a | (Forecast) b | ||||
Net sales | 1 | 547.0 | 549.0 | 617.5 | |
Operating income | 2 | 10.0 | 11.0 | 21.0 | |
Ordinary income | Ordinary steel / Special steel | 3 | 17.2 | 17.0 | 16.1 |
Stainless steel | 4 | (11.0) | (10.5) | 3.5 | |
Total | 5 | 6.2 | 6.5 | 19.6 | |
Profit attributable to owners of parent | 6 | (6.6) | 1.0 | 16.9 |
Difference | |
(ⅰ) a-b | (ⅱ) a-c |
(2.0) | (70.5) |
(1.0) | (11.0) |
0.2 | 1.1 |
(0.5) | (14.5) |
(0.3) | (13.4) |
(7.6) | (23.5) |
Inventory evaluation | Ordinary steel / Special steel | 7 | (4.5) | (6.0) | (2.5) |
Stainless steel | 8 | (9.0) | (8.0) | 2.5 | |
Total | 9 | (13.5) | (14.0) | 0.0 |
1.5 | (2.0) |
(1.0) | (11.5) |
0.5 | (13.5) |
No | FY2016 | FY2015 (Actual) c | |||
(Actual) a | (Forecast) b | ||||
Crude steel production (10,000tons) | Ordinary steel / Special steel | 1 | 314 | 319 | 327 |
Stainless steel | 2 | 65 | 66 | 71 | |
Total | 3 | 379 | 385 | 398 | |
Sales volume (10,000tons) | Ordinary steel / Special steel | 4 | 306 | 304 | 321 |
Stainless steel | 5 | 52 | 53 | 60 | |
Total | 6 | 358 | 357 | 381 | |
Average sales price of steel products(1,000yen/tons) | 7 | 117 | 118 | 127 | |
Export ratio(monetary basis;%) | 8 | 15 | 15 | 17 | |
Export exchange rate(yen/US$) | 9 | 120 | 121 | 109 |
Difference | |
(ⅰ) a-b | (ⅱ) a-c |
(5) | (13) |
(1) | (6) |
(6) | (19) |
2 | (15) |
(1) | (8) |
1 | (23) |
(1) | (10) |
0 | (2) |
(1) | 11 |
Nisshin Steel Co. Ltd. published this content on 09 May 2016 and is solely responsible for the information contained herein.
Distributed by Public, unedited and unaltered, on 13 May 2016 11:23:09 UTC.
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