TOKYO (dpa-AFX) - Nippon Steel Corp. (NISTY.PK) reported a profit for the first half of fiscal 2019 that declined from the prior year. The company cut its annual business profit outlook citing deterioration in the steel supply-demand environment in Japan and overseas as well as the impact of disasters. The company will integrate and reorganize Steelworks, as a part of an organizational and operational review. The reorganization will be effective by April 1, 2020.
The company noted that the Kashima Works, Kimitsu Works, Kamaishi Works of the Bar & Wire Rod Unit, and Naoetsu Works of the Titanium Unit will be integrated and reorganized as the East Japan Works.
The Wakayama Works, Amagasaki Works of the Pipe & Tube Unit, and Osaka Steel Works of the Railway, Automotive & Machinery Parts Unit will be integrated and reorganized as the Kansai Works, the company said in a statement.
The Hirohata Works will be integrated with the Kure Works, Sakai Works, Toyo Works, and Osaka Works of Nippon Steel Nisshin Co., Ltd. and reorganized as the Setouchi Works.
The Yawata Works, Oita Works, and Hikari Titanium Production Division of the Titanium Unit will be integrated and reorganized as the Kyushu Works.
The company will rename Muroran Works of the Bar & Wire Rod Unit as the Muroran Works.
Nippon Steel reported that its profit attributable to owners of the parent for the first half of fiscal 2019 declined to 38.7 billion yen or 42.09 yen per basic share from 116.7 billion yen or 132.33 yen per basic share in the previous year.
Business profit for the period was 73.1 billion yen down from 157.9 billion yen last year.
But, revenue for the first half of fiscal 2019 grew to 3.05 trillion yen from 2.94 trillion yen last year.
For the Fiscal 2019, the company expects profit attributable to owners of the parent to be 40.00 billion yen or 43.00 yen per basic share, and revenues of 6.10 trillion yen.
The company lowered its annual business profit to 100 billion yen from the prior outlook of 150 billion yen.
Copyright RTT News/dpa-AFX