Kobe Steel ( (KBSTF) ) has released its Q2 earnings. Here is a breakdown of the information Kobe Steel presented to its investors.
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Kobe Steel, Ltd., a prominent player in the steel and manufacturing industry, operates with a diversified portfolio that spans across sectors such as steel and aluminum, advanced materials, welding, machinery, and electric power. The company is listed on the Tokyo and Nagoya Stock Exchanges, symbolizing its significant presence in Japan’s industrial landscape.
In its latest earnings report for the six months ending September 30, 2024, Kobe Steel announced a slight decline in net sales to 1,248.6 billion yen, a decrease of 0.4% compared to the previous year. The period also saw notable reductions in operating profit and ordinary profit, which fell by 15.7% and 22.5%, respectively, indicating challenges in maintaining last year’s exceptional growth rates.
Key financial metrics revealed a profit attributable to owners of the parent at 56.6 billion yen, down by 29.6% year-on-year, while the equity-to-asset ratio improved to 38.9%, reflecting a stronger balance sheet. Despite the decrease in net income, the company maintained its dividend per share at 45 yen for the second quarter, projecting a stable total dividend of 90 yen for the fiscal year.
Looking ahead, Kobe Steel’s management remains cautiously optimistic, forecasting a modest increase in full-year net sales by 2.2% to 2.6 trillion yen, though operating and ordinary profits are expected to decline. The company continues to navigate a complex market environment, focusing on bolstering its financial stability and exploring growth opportunities across its diverse business segments.