The world's second biggest steelmaker Japan-based Nippon Steel & Sumitomo Metal Corp. (NSSMC) has announced its financial results for the financial year 2016-17, ended March 31, posting a net profit of JPY 130.94 billion ($1.16 billion), declining by 10 percent year on year. In the given period, the company's net sales amounted to JPY 4.63 trillion ($41.27 billion), compared to net sales of JPY 4.9 trillion in the previous financial year.
During the given year, NSSMC's steelmaking and steel fabrication segment recorded net sales of JPY 4.05 trillion ($36.09 billion), decreasing by 5.4 percent year on year. NSSMC stated that in Japan it continued to implement policies to enhance its manufacturing capabilities in terms of both facilities and workforce. In overseas markets, the company took major strides toward enhancing its global supply network to capture demand in overseas growth markets and build an operating structure that better responds to customers’ global development requirements.
Meanwhile, in the given financial year, NSSMC produced 45.17 million mt of crude steel, up 1.43 percent, while the company's steel product shipments amounted to 39.78 million mt, remaining stable, both year on year.
NSSMC said that the Japanese economy is forecast to show a continued moderate recovery as labor market conditions are getting tight, as the government’s economic stimulus measures have positive effects, and as industrial production shows improvement. Domestic steel demand is expected to remain firm, especially in the construction and automotive sectors. NSSMC anticipates that overseas steel demand will continue to be firm, with strong demand in the US and the ASEAN economies as well as steady domestic demand in China. The company will continue to closely monitor trends in steel product supply and demand and raw material prices, and will also strive to implement maximum cost improvement.