April 2 (Bloomberg) -- Nippon Steel Corp., Japan’s largest steelmaker, reversed 80.7 billion yen ($975 million) of losses last quarter after the stock market recovery increased the value of its holdings.
The loss in the valuation of securities held by the company narrowed to 3.8 billion yen, Tokyo-based Nippon Steel said today in a statement. It booked an 84.6 billion yen charge in the nine months ended Dec. 31 to write down the value of shares it owns in other companies.
The benchmark Nikkei 225 stock index rose 19 percent in the three months ended March 31, its biggest quarterly gain in more than two years. Sumitomo Metal Industries Ltd., Nippon Steel’s largest investment and its merger partner, also advanced 19 percent in Tokyo trading last quarter.
Nippon Steel is compiling full-year earnings and will announce its profit outlook later if necessary, according to the statement. In January, the company forecast it would break even for the full year, compared with a profit of 93.2 billion yen a year earlier.
Nippon Steel shares, which have gained 16 percent this year, fell 1.8 percent to 233 yen on the Tokyo Stock Exchange.
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