Strengthening the Domestic Business Base

「今期は第１四半期に高炉トラブルおよび火災事故の影響が一部残ったものの、国内事業における売価改善が進んだことに加え、インドネシア事業における数量増や売価・コストの改善により、特殊鋼鋼材事業全体では増益となりました。なお、高炉トラブル・火災事故については、５月下旬から通常操業に戻っており、その影響が解消しています。」

「The domestic business faced lower demand and reduced sales volumes caused by blast furnace problems and a fire at the Muroran industrial complex, resulting in lower revenue for the special steel products business overall. The operating loss was ¥1.024 billion, a decline of ¥4.342 billion from the previous fiscal year, compared with operating profit of ¥3.318 billion in the previous fiscal year.」

「The special steel products business posted an operating loss of ¥105 million, a decline of ¥1.963 billion year on year, compared with operating profit of ¥1.858 billion in the previous year. Although the overseas Indonesian business posted higher profit due to higher sales volumes and cost improvements, productivity deteriorated in the domestic business because lower volumes across the Muroran industrial complex, including contract production, and blast furnace problems reduced operating rates, resulting in a substantial decline in profit.」

「Sales in the special steel products business declined by ¥6.177 billion, or 13.1%, year on year to ¥41.129 billion. Sales volumes declined in Japan for construction machinery, industrial machinery, machine tools, and other products, while overseas sales volumes in Indonesia also declined, mainly because higher interest rates depressed automobile sales. Operating profit declined by ¥41 million, or 2.2%, year on year to ¥1.858 billion. Despite the impact of lower sales volumes, profit was broadly in line with the previous year as selling prices and costs improved.」

「Operating profit declined by ¥2.696 billion, or 56.9%, year on year to ¥2.041 billion. Although the overseas Indonesian business posted higher profit due to lower scrap prices and other factors, profit declined overall because of lower domestic sales volumes and the resulting deterioration in productivity and material yield, selling prices failed to keep pace with higher imported raw material prices caused by the weaker yen, and the prior-year benefit from using low-cost raw material inventories acquired before the price surge disappeared.」

「Sales in the special steel products business declined by ¥1.223 billion, or 2.5%, year on year to ¥47.306 billion. Although price pass-through progressed in response to higher raw material and energy prices, revenue declined overall because the impact of weaker demand for construction machinery, industrial machinery, and other products was significant. Operating profit declined by ¥1.111 billion, or 36.9%, year on year to ¥1.899 billion.」

「Sales in the special steel products business declined by ¥801 million, or 3.4%, year on year to ¥23.106 billion. Although price pass-through progressed in response to higher domestic and overseas raw material and energy prices, revenue declined overall because the impact of weaker domestic demand was significant, despite higher revenue in the overseas Indonesian business. Operating profit declined by ¥708 million, or 42.8%, year on year to ¥946 million.」

「In the domestic business, we will strengthen our earnings-generating capabilities as a core business by maintaining and expanding margins through improved selling prices, reducing manufacturing costs through plant DX, and improving customer satisfaction by promoting sales-related DX.」

「Operating profit increased substantially in the domestic business, owing to the elimination of one-off costs associated with last year's blast furnace refurbishment, as well as cost improvements from higher sales volumes and the resulting increase in production volume.」

「In the special steel products business, sales increased by ¥5.942 billion, or 23.1%, year on year to ¥31.655 billion, driven mainly by higher domestic sales volumes for construction machinery and higher selling prices, as well as the inclusion of JATIM as a consolidated subsidiary.」

「We are pursuing refreshment investments and strategic investments at Mitsubishi Steel Muroran Special Steel Co., Ltd. In addition, to make Chiba Works the mother plant for all businesses, we will install a vacuum melting furnace for the development of new materials and enhance other testing and prototyping facilities.」

「As a first step in strengthening our operating base, we are pursuing refreshment investments and strategic investments at Mitsubishi Steel Muroran Special Steel Co., Ltd.」

「To strengthen our domestic operating base and accelerate overseas expansion, we will use our cash on hand efficiently to achieve sustainable growth and enhance corporate value.」

「In the special steel products business, sales declined by ¥2.442 billion, or 21.5%, year on year to ¥8.926 billion, partly due to lower sales of exported products amid weak Asian market conditions and measures taken in response to lower raw material prices. Operating profit increased by ¥21 million, or 7.5%, year on year to ¥312 million, reflecting the effects of cost reductions from improved operations and other factors.」

「We will solidify our foundation as a mother plant, coordinate our sales, manufacturing, and technology divisions, and seek to strengthen domestic cost competitiveness, develop new products, and enhance our technological capabilities.」