JFE Holdings Slumps as Steelmaker Doesn’t Give Net OutlookMasumi Suga
JFE Holdings Inc., Japan’s second-biggest steelmaker, tumbled by the most in more than two years after declining to provide a full-year net income forecast, citing difficulty in reaching a rational estimate.
The shares fell 214 yen, or 8.3 percent, to 2,363 yen at the close, the biggest one-day decline since March 15, 2011, after JFE said it couldn’t provide forecasts for fiscal year sales, net income or operating profit.
Current profit is forecast to total 170 billion yen this fiscal year, missing the 226 billion yen forecast from 16 analysts, according to data compiled by Bloomberg.
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., 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.