Photo: Bloomberg

Photo: Bloomberg

Nippon Steel cuts annual profit outlook by one-third

Nippon Steel cuts annual profit outlook by one-third

Tokyo: Nippon Steel Corp, the world’s No.4 steelmaker, booked a 34% fall in April-December profit as exports tumbled and prices sagged on higher supplies, prompting it to cut its annual outlook by one-third.

Photo: Bloomberg

It trimmed its annual profit outlook to ¥120 billion only three months after it slashed the forecast by 22% to ¥180 billion in October.

That compares with a mean estimate of ¥170 billion in a poll of 20 analysts in ThomsonReuters I/B/E/S.

A shaky global economy and China’s tight monetary policy dented demand in China, the world’s top producer and consumer, while supply from bulked-up steelmakers in South Korea and China continued to increase, eroding prices.

Nippon Steel’s share price has risen 4.7% this year as of Thursday’s close, moving in tandem with the broader Nikkei average.

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