The world's second biggest steelmaker Japan-based Nippon Steel & Sumitomo Metal Corp. (NSSMC) has announced its financial results for the financial year 2012-13 ended March 31, posting a net loss of JPY 124.6 billion ($2.2 billion), compared to a net profit of JPY 58.47 billion in the previous financial year. In FY 2012-13, the company's net sales amounted to JPY 4.4 trillion ($78.03 billion), increasing by 7.3 percent year on year.
According to company's statement, the net loss was caused by losses on the sale of shares of Sumitomo Metal Industries, Ltd and other investment securities, in addition to impairment losses at Hirohata Steelworks, Sakai Steelworks, and other facilities.
Japanese domestic steel demand remained robust in the civil engineering and construction sectors, mainly in the case of reconstruction and disaster prevention projects, but demand in the automotive, shipbuilding, industrial machinery, and other manufacturing sectors declined. Steel exports to the ASEAN countries remained relatively strong, but the overall steel material market was sluggish, as steel mills in South Korea and China continued to supply a large volume of steel products, which weakened the supply and demand balance in the East Asian market.
Meanwhile, in FY 2012-13 NSSMC produced 46.03 million mt of crude steel, while the company's steel product shipments amounted to 40.97 million mt.
NSSMC is unable to forecast reasonably accurate earnings estimates for the financial year 2013-14 due to several factors, including the fact that the company is still negotiating prices for primary raw materials and steel material products.
