JFE Holdings Results up to March next year, 100 billion yen deficit forecast August 12 17:25
JFE Holdings, a major steel company, has suffered from the new coronavirus, which is causing a slump in demand for steel products for automobiles. Therefore, the final profit and loss forecast for the year ending March next year is 100 billion yen. We have made clear the deficit and the prospect of a deficit for the second consecutive year.
JFE Holdings announced on the 12th, and the financial results for the three months until June were 743.9 billion yen, with a 19% decrease in net sales for the group as a whole compared to the same period of the previous year, with a net loss of 19.7 billion yen. This turned into a deficit of 39.1 billion yen, the first deficit in four years in the first quarter.
This is because demand for steel products such as steel products for mainstay automobiles has dropped due to production adjustments and other factors in response to the spread of the new coronavirus.
In addition, regarding the forecast for the one-year period until March next year, which had been postponed until now, although demand is on a recovery trend, the final loss is 100 billion yen and the deficit is 100 billion yen, as the decline has been large so far. We have announced the prospect of a loss for the second consecutive year.
At a telephone interview, President Kashiki said, "We will consider structural reforms such as reviewing the domestic production system ahead of schedule and proceed with efforts to secure profits."