3 Major Steelmakers in Japan Plunge into Red in April-June

Economy

Tokyo, Aug. 12 (Jiji Press)--All three major Japanese steelmakers plunged into the red in April-June, as the coronavirus crisis led automakers and other clients to suspend production, dragging down steel demand.

JFE Holdings Inc. <5411> reported a group net loss of 39.1 billion yen on sales of 743.9 billion yen, down 19.8 pct from a year before, for the first quarter of fiscal 2020.

For the full year through March 2021, the company expects a net loss of 100 billion yen, the second straight huge annual loss.

The company is in "a tougher business environment than anything experienced before," President Koji Kakigi said in a teleconference.

JFE Holdings will slash 100 billion yen in costs. It will consider implementing structural reform measures earlier than scheduled, including a plan to shut down a blast furnace at East Japan Works' Keihin site in Kawasaki, Kanagawa Prefecture, in fiscal 2023.

[Copyright The Jiji Press, Ltd.]

Jiji Press