Japanese steel manufacturer Kobe Steel Group (Kobelco) has revised its earnings forecast for FY2021(ending March 31, 2021) to JPY7bn ($63mn) on strong demand in its materials business.
The company had projected a loss of JPY10bn in February but revised its forecast following an increase of JPY6bn in machinery exports due to a weaker Yen against the US dollar and a rise of JPY4.5bn in power sales due to an electricity shortage in winter.
Kobelco had expected the ongoing global shortage of semiconductors to slow automobile production. However, since the group hasn’t witnessed a drop in overall auto production, it anticipates an increase of JPY4bn in its materials business.
The company produced 1.65mn mt of crude steel in Q3FY2020 (ending December 30, 2020). Its sales were up 1pc at 1.34mn mt in the same period.