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3d ago

Nippon Steel Posts ¥195.8 Billion Loss as U.S. Steel Integration Costs Bite

It projects earnings from July on the back of acquired U.S. Steel assets following an upward revision of its fiscal forecasts.

The Nippon Steel logo is displayed at the company's East Nippon Works Kimitsu Area plant in Kimitsu, east of Tokyo, Japan May 26, 2025. REUTERS/Issei Kato/ File Photo

Overview

  • Nippon Steel recorded a consolidated net loss of ¥195.8 billion in the April–June quarter, compared with a ¥157.5 billion profit a year earlier.
  • Sales fell 8.3% to ¥2.01 trillion and business profit dropped 61.2% to ¥92 billion in the same period.
  • The company incurred a ¥230 billion restructuring charge to dissolve its ArcelorMittal joint venture as part of measures addressing competition concerns over the U.S. Steel takeover.
  • For the year ending in March 2026, it raised its business profit forecast to ¥480 billion from ¥400 billion while now anticipating a net loss of ¥40 billion.
  • The June acquisition of U.S. Steel will begin contributing to earnings from July, and full control of Krosaki Harima plus technology transfers are expected to boost profits by about ¥80 billion.