Nippon Steel revises down profit forecast, says US Steel deal on track

TOKYO: Nippon Steel, Japan’s biggest steel maker, revised on Thursday (Nov 7) its full-year net profit outlook to ¥310 billion (US$2 billion) from a previous forecast of ¥340 billion due to inventory valuation losses from weak raw material prices.
Even as Nippon Steel, the world’s fourth-biggest steel maker, revised its forecast for the fiscal year ending March, it expects to maintain full-year dividend target at 160 yen apiece.
Its net profit for the six-month period ended Sep 30 was down 19 per cent at ¥243.4 billion year-on-year.
The company reiterated its plans to close its acquisition deal for US Steel before the year-end. Nippon Steel reaffirmed the timing after Republican Donald Trump, who has said he would block the deal, won the US presidential election.
The Committee on Foreign Investment in the United States (CFIUS) has extended its review of the US$15 billion deal until the end of December. Nippon Steel said on Thursday the deal was “progressing towards close”.
In order to win the approval, Nippon Steel has made social guarantee and investment pledges to US Steel and a powerful labour union involved, and promised to sell a stake in a US steel plant’s joint venture if it succeeds in the buyout.