JFE Holdings Slumps as Steelmaker Doesn’t Give Earnings Outlook

JFE Holdings Inc. (5411), Japan’s second-biggest steelmaker, tumbled in Tokyo trading after declining to provide a full-year profit forecast, citing difficulty in reaching a rational estimate.

The shares fell as much as 232 yen, or 9.2 percent, to 2,340 yen as of 2:23 p.m. in Tokyo after JFE said it couldn’t provide forecasts for fiscal year sales, net income or operating profit. Current profit will total 170 billion yen this fiscal year, the company said.

The statement on the outlook came as JFE reported a 27 percent gain in net income to 23 billion yen ($233 million) in the three months ended June 30.

First-quarter sales at JFE increased 15 percent to 840 billion yen, while operating profit more than doubled to 25 billion yen, the company said in the statement.

JFE plans to save 100 billion yen in the 12 months to March 2014 after 120 billion yen of cost reductions in the previous year, the company said April 23. 

Nippon Steel & Sumitomo Metal Corp. (5401), the world’s second-biggest steelmaker created by the merger of Nippon Steel Corp. and Sumitomo Metal Industries Ltd. in October, is scheduled to report quarterly results on July 31.

To contact the reporter on this story: Masumi Suga in Tokyo at msuga@bloomberg.net

To contact the editor responsible for this story: Jason Rogers at jrogers73@bloomberg.net

Press spacebar to pause and continue. Press esc to stop.

Bloomberg reserves the right to remove comments but is under no obligation to do so, or to explain individual moderation decisions.

Please enable JavaScript to view the comments powered by Disqus.