Nippon Steel to fall in red due to special loss over U.S. Steel deal
The company's latest outlook, a sharp reversal from its earlier forecast of a 200 billion yen net profit, includes a special loss of 240 billion yen from the sale of all its shares in an Alabama-based joint venture with global steel supplier ArcelorMittal SA. The earlier planned transaction was executed after the U.S. Steel purchase was finalized to address antitrust concerns.
For the April-June quarter, it said revenues fell by 8.3 percent to 2.01 trillion yen, while it booked an operating loss of 139.56 billion yen and a net loss of 195.83 billion yen.
Nippon Steel said in June it completed the $14.1 billion buyout of U.S. Steel after securing a national-security agreement with the administration of U.S. President Donald Trump, putting an end to a year-and-a half struggle to advance the deal with the iconic American company.
The Japanese producer expects a full-year loss despite incorporating earnings of U.S. Steel for the nine months from July, expecting a lift by 80 billion yen.
But "uncertainties persist" regarding the impact of Trump's higher tariffs on steel, auto and other products, Nippon Steel Executive Vice President Takahiro Mori said at a press conference on Friday.
© KYODO
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