In its financial results summary released on 16 October, Tokyo Steel Manufacturing revised its full-year earnings forecast upward, changing operating profit/loss from a ¥4 billion loss to a ¥1 billion profit and net income from ¥1 billion to ¥7 billion. The interim period is expected to remain loss-making, with a loss recorded in July–September.
Tokyo Steel Manufacturing, which released its financial results summary on 16 October, raised its full-year operating profit/loss forecast from a ¥4 billion loss to a ¥1 billion profit and its net income forecast from ¥1 billion to ¥7 billion. The factors cited were higher shipping prices and lower-than-expected purchase prices for steel scrap, a raw material. Operating profit/loss for the interim period is expected to be a ¥3.5 billion loss. Based on the ¥2.307 billion loss recorded in April–June, the July–September period is expected to post a ¥1.193 billion loss. The plan requires an operating profit of ¥4.5 billion in the second half, based on the assumption that higher shipping prices will be reflected.
On 16 October, the share price closed at ¥1,688, up 2.7% from the previous day after the disclosure, slightly below the approximately ¥1,692 25-day moving average. The interim results will provide an opportunity to assess the July–September results and trends in shipping prices.
Tokyo Steel Manufacturing's share price has continued to trade below its 25-day moving average, with the same-day closing price below the line. Share price performance may serve as an indicator of how the market assesses any earnings revision at the time of the interim results.
The next scheduled announcement is the interim results on 23 October, when the July–September results and trends in shipping prices are expected to attract renewed attention.