Home Scrap Metal Prices Price Regions US Scrap Metal Prices China Scrap Metal Prices India Scrap Metal Prices Europe Scrap Metal Prices Aluminum ScrapBrass/BronzeCopper ScrapCupro-NickelElectronics ScrapLead ScrapScrap Gold Prices (Hallmarked)Scrap Gold Prices (Non-Hallmarked)Stainless SteelSteelMarket News
Japan's Nippon Steel raises full-year profit forecast, confident on U.S. Steel deal
Published by
ScrapPrices
Published on August 01,2024 07:00 AM Steel
Japan's biggest steelmaker Nippon Steel (5401.T), opens new tab on Thursday raised its full-year profit forecast amid improving margins in the steel business, and reiterated its confidence in closing its proposed acquisition of U.S. Steel (X.N), opens new tab by year-end.

TOKYO, Aug 1 (Reuters) - Japan's biggest steelmaker Nippon Steel (5401.T), opens new tab on Thursday raised its full-year profit forecast amid improving margins in the steel business, and reiterated its confidence in closing its proposed acquisition of U.S. Steel (X.N), opens new tab by year-end.

Net profit in April-June, its first quarter, fell 11% from a year earlier to 157.6 billion yen ($1 billion), but exceeded analyst expectations of 108.7 billion yen as per LSEG data.

The world's fourth-biggest steelmaker increased its net profit forecast for the year ending in March 2025 to 340 billion yen from 300 billion yen, expecting its steel business to improve. Still, the revised figure fell short of analysts' estimate of 372.6 billion yen.

"We face an unprecedented slump in steel demand, but our efforts have borne fruit," Vice Chairman Takahiro Mori said, noting its restructuring including shutting down steel plants.

Nippon Steel, which clinched the $14.9 billion deal to buy U.S. Steel last December, said on Thursday it received a second request for information and data from the U.S. Department of Justice as part of the U.S. government's review of the deal.

"We are confident that we can close the deal by the end of this year," Mori said, citing his repeated visits to the U.S. and dialogue with some 700 stakeholders, including employees of the U.S. Steel, have helped to foster a better understanding of the deal.

Both steelmakers have received all regulatory approvals outside of the United States for the deal, but face political opposition, U.S. regulatory scrutiny and objections from the powerful United Steelworkers (USW) union, which fears the deal could lead to job losses.

"The union has not explicitly changed its position, but the right understanding has been disseminated around it," Mori said.

As a part of its bid, which has faced resistance from both Democrats and Republicans, Nippon Steel said it has committed to no job cuts, job or production transfer overseas or plant closures even after the current agreement between USW and U.S. Steel expires in September 2026.

MORE STEEL NEWS
November 07,2024 08:00 AM
Japan's Nippon Steel (5401.T), opens new tab hopes to close its $15 billion deal to buy US Steel (X.N) by year-end before Republican Donald Trump retakes the White House in January, a senior executive said, as the acquisition is core to its future growth.
October 28,2024 07:00 AM
As of October 25, the prices of hot-rolled flat products in the USA were at the level of $690-700 per short ton, and cold-rolled – $960-1000/t
October 11,2024 06:00 AM
German steel industry leader ThyssenKrupp Steel (TKS) recently warned that workers at the Duisburg-headquartered company face deep cuts due to a declining European steel market.