Nippon Steel Raises Full-Year Profit Forecast; U.S. Steel Business Becomes Main Earnings Driver

Core Facts

On August 4, Nippon Steel announced a 32% upward revision to its current fiscal year net profit forecast to 290 billion yen (approximately 12.41 billion yuan), primarily due to continued strength in the U.S. steel market boosting earnings from its U.S. Steel business. In the April-June quarter, the company posted net profit of 75.3 billion yen, a sharp turnaround from a loss of 195.83 billion yen in the same period last year, which was mainly due to a one-time loss from the disposal of its equity interest in the AM/NS Calvert joint venture.

Inventory and Logistics

Based on the improved outlook, the company raised its underlying operating profit forecast for U.S. Steel for the fiscal year ending March 2027 to more than 180 billion yen, up from the previous forecast of more than 100 billion yen. Due to recent steel price increases, the company raised its U.S. hot-rolled coil price forecast range by US$100/short ton to US$1,000-1,100/short ton. The yen's depreciation against the U.S. dollar and inventory valuation gains from higher raw material prices also supported the upward revision.