Nippon Steel cautious on its outlook because of China
Nippon Steel, the fourth largest producer of steel, has experienced an improvement in its results for the fifth consecutive quarter, but reported lower than expected given the market slowdown in growth in China.
The Japanese group has announced a recurring earnings, before taxes and exceptional items, of 61.9 billion yen (541 million euros) for the period April to June, against a loss of 56.7 billion yen a year earlier .
Its sales jumped 30% to 970.6 billion yen.
The steelmaker Nippon nevertheless intends to realize an annual profit of 250 billion yen, while the Thomson Reuters consensus I / B / E / S expects 316 billion yen.
Nippon Steel and ArcelorMittal joins said he expects a sharp drop in its third quarter results, in the grip of a slowdown in economic growth in China, a seasonal decline in activity and an increase prices of raw materials.
The sharp drop in prices in China have led steelmakers to cut production and the market could find itself in a situation of excess supply even while Beijing hardened its policy and reduced exports.
The Japanese group also announced Wednesday it would form a technical alliance with Australian BlueScope Steel for reinforced steel products for construction markets to boost sales abroad.
After the results, the title of Nippon Steel closed up 3.73%, to 306 yen.