Kobe Steel, Ltd. (KBSTY.PK,5406.T), a Japanese steel manufacturer, on Monday announced that it expects a decline in net earnings for the first half despite an increase in revenue.
However, the company anticipates a rise in annual results helped by an expected recovery in sales volume mainly in the materials businesses and the construction machinery business, cost improvements, and an improvement in inventory valuation.
For the six-month period to September 30, Kobe Steel anticipates a net income of JPY 35 billion, down 44.3% from last year. Income per basic share is projected to be at JPY 88.40. The steelmaker projects sales of JPY 1.240 trillion, up 5% from the previous year.
For the 12-month period to March 31, 2027, Kobe Steel expects a net income of JPY 100 billion, up 6.7% from the previous year. Income per basic share is projected to be at JPY 251.80. Kobe Steel anticipates sales of JPY 2.560 trillion, up 5.1% from last year.
The company noted: "The outlook incorporates a potential downside risk of 10.0 billion yen to profit due to the situation in the Middle East. This encompasses effects on exports to the region, procurement of raw materials for aluminum-related businesses, higher crude oil prices, and increases in fuel and energy costs."
For the 12-month period to March 31, 2026, the steelmaker has recorded a net income of JPY 93.717 billion, or JPY 237.80 per basic share, on sales of JPY 2.436 trillion.
For the 12-month period to March 31, 2027, the company aims to pay a total dividend of JPY 80 per share, unchanged from last year's JPY 80 per share.
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May 08, 2026 15:50 ET Manufacturing and services sector survey results and labor market data from main economies were the highlight on the economics news front this week. Factory orders and jobs report dominated the news flow in the U.S. Similarly, industrial production data from German garnered attention in Europe. In Asia, purchasing managers’ survey results from China and the central bank decision from Australia were in focus.