JFE Holdings, a major steel company, has revised its final profit and loss outlook for the current fiscal year upward from a deficit of 100 billion yen to a deficit of 38 billion yen as production for its mainstay automobiles has picked up.
JFE Holdings' financial results for the entire group for the nine months to December last year showed a final loss of 69.6 billion yen, the largest deficit ever for this period.
The main reason for this is that the spread of the new coronavirus infection caused a significant drop in steel production for automobiles and a decrease in shipbuilding and construction production around the summer of last year.
However, since production for the mainstay automobiles has picked up and the selling price of steel products has also risen, the final profit and loss forecast for this year and the year is 38 billion yen from the previous deficit of 100 billion yen. It has been revised upward to the deficit of the circle.
"While steel demand is expected to gradually recover, we will continue to make efforts to improve profitability, such as cost reductions and a review of capital investment," said Masafumi Terahata, vice president, at a telephone interview.
Nippon Steel, the largest steel manufacturer, and Kobe Steel have also revised their final profit and loss outlook for the current fiscal year upward, and the performance of major steel companies is improving due to the recovery in demand for steel products.