Japan's Biggest Steelmaker Nippon Steel posts $1.3 Billion Q1 Loss

Japan’s biggest steel producer, Nippon Steel, has reported an operating loss of ¥195.83bn ($1.3bn) for the three months ended June 30, it said on Friday, wider than analyst expectations.

Analysts in a LSEG poll had expected Nippon Steel to post ¥25.7bn in quarterly losses. A year earlier, Nippon Steel had posted net profit of Y157.56bn.

For the year ended March 2024, Nippon Steel forecasted a loss of ¥40bn, it said.

In June, Nippon Steel completed its $14.9bn acquisition of U.S. Steel after an 18-month battle to get approval from the U.S. government for a deal that was subject to scrutiny for national security issues.

Key Highlights

Nippon Steel posts ¥195.8 billion operating loss in Q1 June, far exceeding forecasts.
¥14.9 billion U.S. Steel acquisition closes amid national security scrutiny, consolidating global footprint.
Japan’s top steel maker forecasts further losses, signaling challenges in global steel market.

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With manufacturing bases in Japan, and more than 15 countries globally, Nippon Steel Corporation is Japan's largest steel maker and one of the largest steel producers in the world. The group, the Nippon Steel Group conducts business in four areas starting with the core segment of Steelmaking and Steel Fabrication, and including Engineering and Construction; Chemicals and Materials; and System Solutions.