Nippon Steel, Japan’s largest steelmaker, has raised its full-year profit forecast following a stronger-than-expected first-quarter performance. For the quarter ending in June, the company reported a net profit of 157.6 billion yen ($1 billion), an 11% decrease from the previous year but surpassing analyst expectations of 108.7 billion yen.
The firm increased its net profit forecast for the fiscal year ending in March 2025 to 340 billion yen, up from 300 billion yen, driven by improving margins in its steel business. However, this revised forecast is still below analysts’ predictions of 372.6 billion yen.
Vice Chairman Takahiro Mori acknowledged the challenges posed by a significant slump in steel demand but highlighted the success of their restructuring efforts, which included shutting down certain steel plants.
Nippon Steel is also moving forward with its $14.9 billion acquisition of U.S. Steel, having received a second request for information from the U.S. Department of Justice as part of the regulatory review. Mori expressed confidence in closing the deal by year-end, citing extensive dialogue with stakeholders to build understanding and support.
Despite facing political opposition and concerns from the United Steelworkers union regarding potential job losses, Nippon Steel has committed to no job cuts or plant closures as part of the acquisition agreement.