Rising Electricity Rates and Planned Power Outages

「In the steel business, energy prices declined because scrap prices remained stable and fell from the previous fiscal year and fuel adjustment prices decreased. However, lower steel selling prices and higher costs resulting from the effects of equipment problems in the first half resulted in lower net sales and lower profit.」

「In the steel business, scrap prices, the principal raw material, remained weak and fell year on year. However, higher energy prices, cost increases resulting from equipment problems, and inventory valuation differences resulted in lower revenue and earnings.」

「If electric furnace costs rise sharply or production is forced to decline because of planned power outages or other factors, the Group will seek to minimize the impact on production, sales and earnings by increasing purchases of steel billets through diversification of its iron sources.」

「Crude steel production increased 12.1% year on year as changing the electricity contract in October 2021 made it possible to operate the electric furnaces 24 hours a day on weekdays, resulting in stable operations above plan.」

「If electric furnace costs rise sharply or production is forced to decline because of planned power outages or other factors, the Group will seek to minimize the impact on production, sales and earnings by increasing purchases of steel billets through diversification of its iron sources.」

「In terms of profitability, scrap prices, the main raw material, fell and the steel spread improved substantially. However, lower steel sales volumes and higher costs including materials and transportation costs left results broadly in line with the previous year.」

「The increase in materials prices, including electrodes and refractories, and higher energy costs such as electricity and gas and logistics costs resulted in performance at the same level as the same period of the previous year.」

「Profit decreased year on year because of higher prices for materials such as electrodes and refractories, as well as increased energy costs such as electricity and gas and higher logistics costs.」

「In the steel business, steel sales volumes decreased from the previous fiscal year, but the substantial increase in steel selling prices lifted net sales to ¥151.261 billion, up ¥4.985 billion year on year. In terms of earnings, soaring prices for scrap, steel billets, electrodes, refractories and other materials, higher energy costs such as electricity and gas, higher logistics costs, and the effects of typhoons on operations resulted in ordinary profit of ¥5.168 billion, down ¥867 million year on year.」

「In terms of earnings, costs increased because prices for scrap and purchased steel billets, the main raw materials, rose, and fuel costs such as electricity and gas increased. However, the benefits of increased steel sales volumes, higher steel selling prices and improved operations, including lower plant costs, enabled the Company to secure higher ordinary profit.」

「In terms of earnings, costs increased because prices for scrap and purchased steel billets, the main raw materials, rose substantially from the same period of the previous year and fuel costs such as electricity and gas increased. However, the benefits of increased steel sales volumes, higher steel selling prices and improved operations outweighed these factors, resulting in higher profit.」

「Costs increased because prices for scrap and purchased steel billets, the main raw materials, rose substantially from the same period of the previous year, and fuel costs such as electricity and gas increased.」

「In terms of earnings, costs increased because prices for scrap and purchased steel billets, the main raw materials, rose from the same period of the previous year and electricity costs increased. However, the positive effects of higher steel selling prices and increased steel sales volumes outweighed these factors, resulting in higher profit.」

「Approximately 40% of the iron inputs used in our products are supplied by our own electric furnaces. Electricity is a major cost for electric furnaces, second only to raw materials, and any increase in electricity rates resulting from the continued shutdown of nuclear power plants or the launch of the feed-in tariff system for renewable energy could have a significant impact on profit or loss. In addition, the implementation of planned power outages could halt production and result in a substantial reduction in output.」

「Approximately half of the iron inputs used in our products are supplied by our own electric furnaces. Electricity is a major cost for electric furnaces, second only to raw materials, and any increase in electricity rates resulting from the continued shutdown of nuclear power plants or the launch of the feed-in tariff system for renewable energy could have a significant impact on profit or loss. In addition, the implementation of planned power outages could halt production and result in a substantial reduction in output.」