Cost Reduction and Selling Price Improvements in Response to Soaring Raw Material Prices

「Although steel prices fell and sales volume declined, segment profit remained at the same level as in the previous fiscal year, at ¥38.0 billion, owing to ongoing cost-reduction efforts and temporary factors such as differences in inventory valuation.」

「発表済の国内主要品種少なくとも+1万円/tの値上げ」

「In the steel business, revenue was ¥1,537.4 billion, down ¥191.9 billion (11.1%) from the previous interim consolidated accounting period, due mainly to falling steel product prices and the foreign exchange impact of a stronger yen. Segment profit declined by ¥39.8 billion, resulting in a loss of ¥5.3 billion.」

「Although the effects of structural reforms emerged and efforts continued to improve selling prices and reduce costs, profit declined substantially by ¥166.4 billion, or 82.1%, from the previous fiscal year to ¥36.3 billion owing to deteriorating overseas steel market conditions, lower sales volume, and temporary profit-reducing factors such as differences in inventory valuation.」

「In the steel business, revenue was ¥1,729.3 billion, down ¥136.5 billion (7.3%) from the previous interim consolidated accounting period, due mainly to lower sales volumes and weaker overseas steel market conditions, despite efforts to continuously improve selling prices and reduce costs. Segment profit was ¥34.5 billion, down ¥88.3 billion from the previous interim consolidated accounting period.」

「We strengthened the earnings base by improving domestic selling prices through passing on higher prices of key raw materials and other commodities, increasing the proportion of high-value-added products, and reducing fixed costs through completion of structural reforms.」

「Despite deteriorating overseas market conditions and temporary profit-reducing factors such as differences in inventory valuation, ongoing efforts to improve selling prices and reduce costs increased segment profit by ¥1.0 billion from the same period of the previous year to ¥171.0 billion.」

「Although efforts were made to continuously improve selling prices and reduce costs, segment profit declined by ¥25.4 billion from the same period of the previous year to ¥122.8 billion owing to deteriorating overseas market conditions and temporary profit-reducing factors such as differences in inventory valuation.」

「Although efforts were made to continuously improve selling prices and reduce costs, segment profit declined by ¥24.9 billion from the same period of the previous year to ¥68.1 billion owing to deteriorating overseas market conditions and temporary profit-reducing factors such as differences in inventory valuation.」

「We strengthened the earnings base by improving domestic selling prices through passing on higher prices of key raw materials and other commodities, increasing the proportion of high-value-added products, and steadily implementing structural reforms and blast furnace repairs. However, business profit and profit for the year attributable to owners of the parent both declined from the previous fiscal year owing to foreign exchange effects and profit-reducing factors such as differences in inventory valuation.」

「Segment profit was ¥170 billion, down ¥82 billion from the year-earlier cumulative period, despite efforts to improve selling prices and achieve ongoing cost reductions. The decline reflected higher raw material prices, foreign exchange effects and one-off factors such as inventory valuation differences.」

「Segment profit decreased by ¥10.3 billion year on year to ¥148.2 billion, as higher raw material prices and cost increases caused by the rapid depreciation of the yen outweighed efforts to improve selling prices and reduce costs.」

「Although costs increased owing to soaring raw material prices, segment profit increased by ¥23.3 billion from the same period of the previous year to ¥93.0 billion, owing to higher selling prices, increased sales volume, ongoing cost-reduction efforts, and temporary profit-enhancing factors such as differences in inventory valuation.」

「We improved selling prices by working to reflect fluctuations in persistently rising prices of key raw materials in selling prices at an early stage. We also steadily implemented capital investment to promote digital transformation and blast furnace repairs, thereby improving productivity and reducing costs.」

「Segment profit improved by ¥353.9 billion year on year to ¥252.0 billion. Although soaring raw material prices increased costs, this was more than offset by improved selling prices, increased sales volume, recovery in the performance of group companies in Japan and overseas, and temporary profit-enhancing factors such as inventory valuation differences.」

「Segment profit improved by ¥294.7 billion year on year to ¥158.5 billion. Although higher raw material prices increased costs, this was more than offset by higher selling prices and sales volume, recovery in the performance of group companies in Japan and overseas, and temporary profit-enhancing factors such as inventory valuation differences.」

「In the steel business, revenue increased by ¥129.8 billion, or 25.5%, from the same period of the previous year to ¥638.5 billion, owing to a substantial recovery in sales volume, which had declined because of the COVID-19 pandemic, and higher selling prices. Segment profit improved by ¥127.5 billion from the same period of the previous year to ¥69.7 billion, owing to higher sales volume, ongoing profitability initiatives, temporary profit-enhancing factors such as differences in inventory valuation, and the recovery in performance at group companies in Japan and overseas.」

「The second half returned to profitability as the company captured the recovery in demand through thorough implementation of minimum-cost operations through production optimization and the rapid restart of blast furnaces using data science technologies, as well as improved selling prices resulting from better export market conditions. However, the impact of deteriorating profitability in the first half was substantial, resulting in a segment loss of ¥65.4 billion.」

「In terms of profit and loss, the business returned to profitability in the third quarter alone owing to ongoing efforts to improve profitability, a recovery in crude steel production as demand recovered, and improved selling prices resulting from better export market conditions.」

「Although efforts were made to improve steel prices and profitability, costs increased substantially owing to higher iron ore prices, materials costs and logistics expenses. In addition, deteriorating overseas market conditions and temporary profit-reducing factors such as differences in inventory valuation resulted in a segment loss of ¥8.7 billion, a substantial deterioration of ¥170.0 billion from the previous fiscal year.」

「Regarding profit and loss, although the Company worked to improve steel prices and profitability, costs increased substantially due to higher iron ore prices, materials and logistics costs, while deteriorating overseas market conditions and temporary profit-reducing factors such as inventory valuation differences also affected results. Segment profit was ¥11.3 billion, down ¥151.9 billion from the same period of the previous year.」

「Regarding profit and loss, although the Company worked to improve steel prices and profitability, costs increased substantially due to higher prices for primary raw materials, materials and logistics, while deteriorating overseas market conditions and temporary profit-reducing factors such as inventory valuation differences also affected results. Segment profit was ¥17.7 billion, down ¥99.6 billion from the same period of the previous year.」

「Regarding profit and loss, although the Company worked to improve steel prices and profitability, costs increased substantially due to higher prices for primary raw materials, materials and logistics, while temporary profit-reducing factors such as inventory valuation differences also affected results. Segment profit was ¥14.5 billion, down ¥49.6 billion from the same period of the previous year.」

「Although efforts were made to improve steel prices and profitability on an ongoing basis, segment profit declined to ¥161.3 billion owing to the effects of operating disruptions and other factors, as well as a substantial increase in costs resulting from higher prices for auxiliary raw materials such as metals, materials costs and logistics expenses.」

「Regarding profit and loss, despite the substantial increase in costs due to higher prices for auxiliary raw materials such as metals, materials costs and logistics costs, as well as the impact of operating disruptions and natural disasters such as torrential rains, efforts to improve steel prices and profitability resulted in ordinary profit of ¥157.0 billion, an increase of ¥6.8 billion from the same period of the previous year.」

「In the steel business, improved steel prices resulted in revenue of ¥1,386.6 billion, an increase of ¥91.9 billion, or 7.1%, from the same period of the previous year. Although costs increased substantially owing to higher prices for auxiliary raw materials such as metals, materials costs and logistics expenses, efforts to improve steel prices and profitability resulted in ordinary profit of ¥114.1 billion, an increase of ¥29.5 billion from the same period of the previous year.」

「Regarding profit and loss, although costs increased substantially due to higher prices for auxiliary raw materials such as metals, materials costs and logistics costs, efforts to improve steel prices and profitability resulted in ordinary profit of ¥64.4 billion, an increase of ¥15.8 billion from the same period of the previous year.」

「Although costs increased substantially owing to soaring coking coal prices since autumn 2016, as well as higher prices for auxiliary raw materials such as metals, materials costs and logistics expenses, ongoing efforts to improve steel prices and profitability resulted in consolidated ordinary profit of ¥198.8 billion for the fiscal year. This represented a substantial increase from the previous fiscal year.」

「Ordinary profit was ¥150.2 billion, owing to progress in improving steel prices, ongoing efforts to improve profitability, and temporary profit-enhancing factors such as differences in inventory valuation. This represented an increase of ¥136.6 billion from the same period of the previous year.」

「Under these conditions, ongoing efforts to improve steel prices resulted in revenue of ¥1,294.7 billion, an increase of ¥222.3 billion, or 20.7%, from the same period of the previous year. Ordinary profit was ¥84.6 billion, owing to progress to a certain extent in improving steel prices, ongoing efforts to improve profitability, and temporary profit-enhancing factors such as differences in inventory valuation. This represented an improvement of ¥109.0 billion from the same period of the previous year.」

「In the steel business, domestic and overseas demand conditions were on a recovery trend, but soaring prices of raw materials, particularly coking coal, became a major factor behind the substantial increase in costs. Under these conditions, efforts to improve steel prices resulted in revenue of ¥636.4 billion, an increase of ¥108.0 billion, or 20.4%, from the same period of the previous year. Although steel prices were not improved sufficiently to offset the increase in raw material prices, ordinary profit was ¥48.6 billion, owing to ongoing efforts to improve profitability and temporary profit-enhancing factors such as differences in inventory valuation. This represented an improvement of ¥68.9 billion from the same period of the previous year.」

「Meanwhile, manufacturing costs have increased significantly as a result of the recent surge in raw material prices. We will step up cost reductions and continue working persistently to improve selling prices while seeking our customers’ understanding.」