Nippon Steel announces loss of billions

7 years ago by in Around the world

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News that major car manufactures are slowing ramping up production is welcome news for All Japan newsese steel manufactures who are feeling the pressure of tighter Margins.

On Thursday, Nippon Steel Corp. announced a significant loss for the fourth-quarter for the 2010 fiscal year. According to an article from Reuters, the company, which is the fourth largest steelmaker in the world, recorded a net loss of ¥11.2 billion. Reuters went on to report that the earthquake and tsunami on March 11 cost the company ¥23.7 billion.

Shinichi Taniguchi, executive vice president for Nippon Steel, said at a news conference that its margins are being squeezed as a result of weak demand in Asia and higher costs for coal. Nippon Steel is also trying to compete with a growing Chinese industrial sector. Over the last year China has increased steel production and exports of its products.

The decline in production in the auto industry had the biggest impact on the steel company. Although companies like Toyota, Honda and Nissan are slowly bringing their factories back on line, they are still working at around half capacity. As a result, Nippon Steel has cut its own production forecasts by about 8 percent for the next quarter. [RT]