Japanese steelmaker Kobe Steel Ltd (Kobe) has issued its financial results for the fiscal year 2013-14 ended March 31.
For the given period, Kobe Steel has reported a net profit of JPY 70.2 billion ($686.4 million), compared to a net loss of JPY 27 billion in the previous financial year. The company's consolidated net sales revenues for the full financial year amounted to JPY 1.82 trillion ($17.8 billion), up 8.3 percent year on year, owing to progress in reducing overall costs and a favorable change in inventory valuation.
Kobe Steel produced 7.62 million mt of crude steel in the period in question, up 8.7 percent year on year. Kobe's steel product sales volume in the given period increased by 8.3 percent to 6.27 million mt, compared to the financial year 2012-13.
According to Kobe Steel, automotive demand has been strong both in Japan and overseas, mainly in the United States. Amid an improvement in the export environment due to a correction in the strength of the yen, Kobe Steel has been steadily addressing overseas demand. As a result, the sales volume of steel products increased in comparison to the previous year. Sales prices also increased in comparison to the previous year due to an improvement in steel prices on the back of higher raw material prices, which were affected by exchange rates.
Regarding the 2014 outlook, steel product shipments are anticipated to remain at a similar level to the fiscal year 2012-13, as demand is expected to continue being strong in the domestic and the US automotive industry. Kobe Steel said that it will continue to negotiate for higher prices of its steel products to improve the margin between sales prices and raw material costs.
