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Name | Symbol | Market | Type |
---|---|---|---|
Nippon Steel Corporation (PK) | USOTC:NPSCY | OTCMarkets | Depository Receipt |
Price Change | % Change | Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Traded | Last Trade | |
---|---|---|---|---|---|---|---|---|---|---|
0.0058 | 0.08% | 7.23 | 7.16 | 7.46 | 7.33 | 7.18 | 7.275 | 21,293 | 21:19:53 |
FORM 6-K
U.S. SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Report of Foreign Private Issuer
Pursuant to Rule 13a-16 or 15d-16
of the Securities Exchange Act of 1934
For the month of February 2019
Commission File Number: 333-228135
NIPPON STEEL & SUMITOMO METAL CORPORATION
(Translation of registrants name into English)
6-1, Marunouchi 2-chome
Chiyoda-ku, Tokyo 100-8071
Japan
(Address of principal executive offices)
Indicate by check mark whether the registrant files or will file annual reports under cover Form 20-F or Form 40-F.
Form 20-F ☒ Form 40-F ☐
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1): ☐
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7): ☐
Information furnished on this form:
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
NIPPON STEEL & SUMITOMO METAL CORPORATION | ||||||
Date: February 7, 2019 | By: |
/s/ Kazumasa Shinkai |
||||
Kazumasa Shinkai | ||||||
Executive Officer, Head of General Administration Division |
Consolidated Basis
Results for the Third Quarter of Fiscal 2018
(April 1, 2018December 31, 2018)
< under Japanese GAAP >
February 6, 2019
Company name: | Nippon Steel & Sumitomo Metal Corporation | |
Stock listing: | Tokyo, Nagoya, Sapporo, Fukuoka stock exchanges | |
Code number: | 5401 | |
URL: | http://www.nssmc.com/en/index.html | |
Representative: | Kosei Shindo, Representative Director and President | |
Contact: | Fumiaki Ohnishi, General Manager, Public Relations Center | |
Telephone: | +81-3-6867-2130 | |
Scheduled date to submit Securities Report: | February 13, 2019 | |
Scheduled date to pay dividends: | - | |
Preparation of supplemental explanatory materials: | Yes | |
Holding of quarterly financial results meeting: | Yes (for investment analysts) |
(Figures of less than ¥1 million have been omitted.)
1. Consolidated Financial and Operating Results through the Third Quarter of Fiscal 2018
(April 1, 2018December 31, 2018) |
(1) Consolidated Operating Results (Accumulated)
(For reference) Comprehensive income: | Third quarter of Fiscal 2018 | ¥ 26,410 million | (91.5)% | |||||
Third quarter of Fiscal 2017 | ¥ 310,262 million | 368.1% |
Earnings per share |
Earnings per share
after full dilution |
|||||||
Yen | Yen | |||||||
Third quarter of Fiscal 2018 |
262.45 | | ||||||
Third quarter of Fiscal 2017 |
176.81 | |
(2) Consolidated Financial Results
Total assets | Net assets |
Ratio of
shareholders equity to total assets |
||||||||||
Millions of yen | Millions of yen | % | ||||||||||
Third quarter of Fiscal 2018 |
7,710,193 | 3,459,992 | 40.3 | |||||||||
Fiscal 2017 |
7,526,351 | 3,515,501 | 41.8 |
(For reference) Shareholders equity: | Third quarter of Fiscal 2018 | ¥ 3,104,051 million | ||||||
Fiscal 2017 | ¥ 3,145,450 million |
2. Dividends
Dividends per share | ||||||||||||||||||||
End of first quarter | End of second quarter | End of third quarter | End of fiscal year | Full fiscal year | ||||||||||||||||
Yen | Yen | Yen | Yen | Yen | ||||||||||||||||
Fiscal 2017 |
| 30.00 | | 40.00 | 70.00 | |||||||||||||||
Fiscal 2018 |
| 40.00 | | |||||||||||||||||
Fiscal 2018 (Forecasts) |
40.00 | 80.00 |
Notes: Whether the dividends forecasts under review have been revised: Yes
3. Consolidated Financial Forecasts for Fiscal 2018 (April 1, 2018March 31, 2019)
(Percentage figures are changes from the same period of the previous fiscal year.) | ||||||||||||||||||||||||||||
Revenue | Business profit (*) |
Profit attributable to
owners of parent |
Earnings per share | |||||||||||||||||||||||||
Millions of yen | % | Millions of yen | % | Millions of yen | % | Yen | ||||||||||||||||||||||
Fiscal 2018(IFRS) |
6,200,000 | | 330,000 | | 230,000 | | 258.00 |
Notes: |
Whether the consolidated financial forecasts for fiscal 2018 under review have been revised: Yes |
For further details, please refer to page
|
As for the consolidated financial forecasts for fiscal 2018 (April 1, 2018March 31, 2019), Nippon Steel & Sumitomo Metal Corporation (NSSMC or the Company) calculates the figures based on International Financial Reporting Standards(IFRS), as the Company has decided to apply IFRS voluntarily from the consolidated financial statements in the fiscal 2018. |
[Additional Information]
Consolidated Operating Results (Rough figures based on IFRS) through the Third Quarter of Fiscal 2018(Accumulated)
(April 1, 2018December 31, 2018)
(Percentage figures are changes from the same period of the previous fiscal year.) | ||||||||||||||||||||||||||||
Revenue | Business profit (*) |
Profit attributable to
owners of parent |
Earnings per share | |||||||||||||||||||||||||
Millions of yen | % | Millions of yen | % | Millions of yen | % | Yen | ||||||||||||||||||||||
Third quarter of Fiscal 2018(IFRS) |
4,570,000 | | 260,000 | | 200,000 | | 226.60 |
(*) |
Business Profit on Consolidated Statements of Profit or Loss indicates the results of sustainable business activities, and is an important measure to compare and evaluate the Companys consolidated performance continuously. It is defined as being deducted Cost of sales, Selling general and administrative expenses and Other operating expenses from Revenue, and added Equity in profit of unconsolidated subsidiaries and affiliates and Other operating income. Other operating income and expenses is composed mainly of Dividend income, Foreign exchange gains or losses, Loss on disposal of fixed assets. |
* |
Notes |
(1) Changes in significant subsidiaries during the period: None
(2) Adoption of special accounting methods for preparation of quarterly consolidated financial statements: Yes
Note: |
For further details, please refer to page 9, 2. Quarterly Consolidated Financial Statements and Main Notes (3) Notes on Quarterly Consolidated Financial Statements (Adoption of Special Accounting Methods for Preparation of Quarterly Consolidated Financial Statements). |
(3) Changes in accounting principles, changes in accounting estimates, and retrospective restatements
(a) Changes in accounting principles accompanying revisions in accounting standards: Yes
(b) Changes other than those in (a) above: None
(c) Changes in accounting estimates: None
(d) Retrospective restatements: None
Note: |
For further details, please refer to page 9, 2. Quarterly Consolidated Financial Statements and Main Notes (3) Notes on Quarterly Consolidated Financial Statements (Changes in Accounting Principles, Changes in Accounting Estimates, and Retrospective Restatements). |
(4) Number of shares issued (common shares)
(a) Number of shares issued at the end of the period (including treasury stock)
|
Third quarter of Fiscal 2018 | 950,321,402 shares | ||
Fiscal 2017 | 950,321,402 shares |
(b) Number of treasury stock at the end of the period
|
Third quarter of Fiscal 2018 | 67,727,862 shares | ||
Fiscal 2017 | 67,710,915 shares |
(c) Average number of shares issued during the term (accumulated)
|
Third quarter of Fiscal 2018 | 882,602,690 shares | ||
Third quarter of Fiscal 2017 | 882,634,161 shares |
* |
This report is not subject to quarterly review by accounting auditor. |
* |
Explanation of the appropriate use of performance forecasts and other related items |
(Explanation of the appropriate use of performance forecasts) |
The forward-looking statements included in this flash report are based on the assumptions, forecasts, and plans of the Company as of the date on which this document is made public. The Companys actual results may differ substantially from such statements due to various risks and uncertainties. |
Nippon Steel & Sumitomo Metal Corporation (5401)
The Third Quarter of Fiscal 2018
Index of Attached Documents
1
Nippon Steel & Sumitomo Metal Corporation (5401)
The Third Quarter of Fiscal 2018
1. Qualitative Information for the Third Quarter of Fiscal 2018
(1) Explanation of Operating Results
Global and Domestic Economic Conditions in the Third Quarter of Fiscal 2018
The global economy as a whole maintained modest growth. While Chinas economic growth slowed down, the economy of the United States remained strong and the economies of emerging countries in general remained firm.
The Japanese economy continued to recover moderately, as indicated by further improvements in the employment and income environments and increased capital investment.
Operating Results by Business Segment in the Third Quarter of Fiscal 2018
Business segments of the Nippon Steel & Sumitomo Metal Corporation Group (the NSSMC Group) strived to respond to the changing business environment and to improve sales and earnings. An overview of operating results by business segment is shown below.
(Billions of yen) | ||||||||||||||||
Net Sales | Ordinary Profit | |||||||||||||||
3Q FY2018 | 3Q FY2017 | 3Q FY2018 | 3Q FY2017 | |||||||||||||
Steelmaking and Steel Fabrication |
3,987.0 | 3,699.8 | 212.5 | 189.7 | ||||||||||||
Engineering and Construction |
253.7 | 205.2 | 5.2 | 4.8 | ||||||||||||
Chemicals and Materials* |
191.0 | 179.4 | 20.6 | 14.5 | ||||||||||||
System Solutions |
187.2 | 168.2 | 18.0 | 14.7 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Total |
4,619.2 | 4,252.8 | 256.4 | 223.9 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Adjustment |
(100.1 | ) | (88.3 | ) | (3.1 | ) | 1.5 | |||||||||
|
|
|
|
|
|
|
|
|||||||||
Consolidated total |
4,519.1 | 4,164.5 | 253.2 | 225.4 | ||||||||||||
|
|
|
|
|
|
|
|
* |
Nippon Steel & Sumikin Chemical Co., Ltd. and Nippon Steel & Sumikin Materials Co., Ltd. were integrated into Nippon Steel Chemical & Material Co., Ltd. in October 2018. Therefore the Chemicals segment and the New Materials segment were unified into the Chemicals and Materials segment. |
Steelmaking and Steel Fabrication
In the Steelmaking and Steel Fabrication segment, domestic steel demand remained solid, especially for shipments to the automotive sector, and overseas steel demand as a whole was on a rising trend. In the domestic steel markets, prices were at a generally high level against a background of stable demand, while prices declined in the overseas markets in the third quarter of fiscal 2018, due to uncertainty over Chinas economic outlook. Amid such operating conditions, although natural disasters, including heavy rainfall and typhoons, as well as a difference in inventory valuation by NSSMC and its Group companies somewhat affected performance, NSSMC continued to work on initiatives to secure appropriate sales prices to maintain continuity in supply. These efforts included adjusting steel product prices to reflect rises in prices of auxiliary materials, such as scrap and alloys, other material procurement costs, and distribution costs. The segment also made steady progress in cost improvement measures. As a result, compared to the same third quarter of fiscal 2017, the Steelmaking and Steel Fabrication segment recorded an increase in net sales to ¥3,987.0 billion, and an increase in ordinary profit to ¥212.5 billion.
2
Nippon Steel & Sumitomo Metal Corporation (5401)
The Third Quarter of Fiscal 2018
Engineering and Construction
Nippon Steel & Sumikin Engineering Co., Ltd. experienced gradually improving business conditions due to the resumption of capital investments by some overseas steel manufacturers and other factors. In addition, the business environment in Japan surrounding the construction and environment-related sectors remained favorable, and steady progress toward project completions was made due to strict control of project execution. As a result, compared to the same third quarter of fiscal 2017, the Engineering and Construction segment recorded an increase in net sales to ¥253.7 billion, and an increase in ordinary profit to ¥5.2 billion.
Chemicals and Materials
Nippon Steel Chemical & Material Co., Ltd. (which was established in October 2018 following the merger of Nippon Steel & Sumikin Chemical Co., Ltd. and Nippon Steel & Sumikin Materials Co., Ltd.) experienced a high level of market prices for mainstay needle coke in the coal tar chemicals business against a background of tight supply and demand conditions. In the functional materials business, overall sales remained firm based on favorable sales of resists for LCDs and metal foils for suspension materials despite signs of weakness seen in sales of circuit board materials for smartphones and other devices. The composite materials business continued to generate robust sales of both epoxy resins for electronic materials and carbon fiber composite materials for the civil engineering and construction sectors. In the chemicals business, prices for styrene monomer declined against the backdrop of lower crude oil prices and a weakening supply and demand balance. As a result, compared to the same third quarter of fiscal 2017, the Chemicals and Materials segment posted an increase in net sales to ¥191.0 billion, and an increase in ordinary profit to ¥20.6 billion.
System Solutions
NS Solutions Corporation provides advanced solution services and other comprehensive solutions in the planning, configuration, operation, and maintenance of IT systems for clients in a wide range of business fields. During the period under review, against the backdrop of robust system investments stemming mainly from customers advanced operational needs, the companys business environment continued to be favorable. In addition, NS Solutions proceeded proactively in developing safe, protective solutions at factories and other work sites that make use of IoT technology, and developed platforms to analyze data based on AI technology. As a result, compared to the same third quarter of fiscal 2017, the System Solutions segment recorded an increase in net sales to ¥187.2 billion, and an increase in ordinary profit to ¥18.0 billion.
Sales and Profit for the Third Quarter of Fiscal 2018
Compared to the same period of fiscal 2017, NSSMC posted growth in both sales and profit: net sales increased to ¥4,519.1 billion; operating profit to ¥150.7 billion; ordinary profit to ¥253.2 billion; and profit attributable to owners of parent to ¥231.6 billion. Please note that the NSSMC Group will voluntarily apply International Financial Reporting Standards (IFRS) beginning with the fiscal year ending March 31, 2019. Based on IFRS, NSSMCs consolidated revenue is estimated to amount to ¥4,570.0 billion, business profit to ¥260.0 billion, and profit attributable to owners of parent to ¥200.0 billion for the third-quarter of this fiscal year.
3
Nippon Steel & Sumitomo Metal Corporation (5401)
The Third Quarter of Fiscal 2018
(2) Explanation of Information on Future Estimates, Including Consolidated Earnings Forecasts
Consolidated Earnings Forecasts
NSSMC anticipates that the overall global economy will continue to grow moderately despite concerns about a slowdown in Chinas economy, as the United States is likely to sustain stable economic conditions and the government in China has been focusing on implementing various measures to support its economy.
The Japanese economy is also expected to maintain its recovery, supported by further improvements in the employment and income environments.
In Japan, demand for steel and steel market prices are forecast to remain firm. While overseas steel demand and market conditions are becoming more uncertain mainly due to intensifying US-China trade friction and the slowdown in the Chinese economy, which partly stems from the former, market prices have recently appeared to stop declining and some impacts can be anticipated from the Chinese governments economic stimulus measures. Developments will require close monitoring.
Amid such operating conditions, the consolidated business performance for the full year of fiscal 2018 will be substantially affected by a decline in production and shipment caused by operation and equipment troubles, including deterioration in the No. 5 blast furnace operation at the Wakayama Works, as well as by the decline in overseas steel prices in the third quarter of fiscal 2018. The Company is now expecting business profit of ¥330.0 billion (based on IFRS), which is ¥20.0 billion less than the amount forecasted at the second-quarter earnings announcement (November 2, 2018). NSSMC plans to switch from Wakayamas No. 5 blast furnace to No. 2 blast furnace and will strive to ensure the smooth start-up, scheduled to start in the middle of February. NSSMC will continue to maximize group-wide management initiatives through initiatives including (a) implementing measures to stabilize equipment use and operations; (b) securing appropriate sales prices to maintain continuity in supply, which includes adjusting steel product prices to take account of surges in prices of auxiliary materials, such as scrap and alloys, other material procurement costs, and distribution costs; and (c) making steady progress in cost improvement measures.
Basic Profit Distribution Policy and the Year-End Dividend Distribution
NSSMCs basic profit distribution policy is to pay dividends from distributable funds at the end of the first half (interim) and second half (year-end) of the fiscal year, in consideration of the consolidated operating results and such factors as capital requirements for investment and other activities aimed at raising corporate value and performance prospects while also considering the financial structure of the Company on both consolidated and non-consolidated bases. The Company has adopted a consolidated annual payout ratio target of around 30% as the benchmark for the payment of dividends from distributable funds in consideration of the consolidated operating results. The level of the first-half dividend is determined based on consideration of interim performance figures and forecasts for the full fiscal year performance.
4
Nippon Steel & Sumitomo Metal Corporation (5401)
The Third Quarter of Fiscal 2018
Regarding the dividend from retained earnings for the end of the fiscal year, the Company had not determined a dividend distribution plan at the second quarter earnings announcement (November 2, 2018). However, in accordance with the policy described above and after giving due consideration to full-year forecasts, the Company now plans to pay a dividend of ¥40 per share (bringing the dividend for the full year to ¥80 per share and representing a consolidated payout ratio of approximately 31% (based on IFRS)).
5
Nippon Steel & Sumitomo Metal Corporation (5401)
The Third Quarter of Fiscal 2018
2. Quarterly Consolidated Financial Statements and Main Notes
(1) Quarterly Consolidated Balance Sheets
Millions of yen | ||||||||
ASSETS |
March 31, 2018 | December 31, 2018 | ||||||
Current assets : |
||||||||
Cash and bank deposits |
108,782 | 133,303 | ||||||
Notes and accounts receivable |
678,579 | 684,135 | ||||||
Inventories |
1,380,003 | 1,513,322 | ||||||
Other |
233,902 | 279,873 | ||||||
Less: Allowance for doubtful accounts |
(1,766 | ) | (1,546 | ) | ||||
Total current assets |
2,399,500 | 2,609,088 | ||||||
|
|
|
|
|||||
Fixed assets : |
||||||||
Tangible fixed assets : |
||||||||
Buildings and structures |
759,716 | 772,163 | ||||||
Machinery, equipment and vehicles |
1,131,993 | 1,194,570 | ||||||
Other |
983,250 | 998,142 | ||||||
|
|
|
|
|||||
2,874,959 | 2,964,876 | |||||||
Intangible assets : |
84,972 | 111,636 | ||||||
Investments and others : |
||||||||
Investments in securities |
871,399 | 668,443 | ||||||
Shares of subsidiaries and affiliates |
1,069,688 | 1,047,722 | ||||||
Net defined benefit assets |
116,573 | 106,319 | ||||||
Other |
112,982 | 206,765 | ||||||
Less: Allowance for doubtful accounts |
(3,726 | ) | (4,659 | ) | ||||
|
|
|
|
|||||
2,166,917 | 2,024,591 | |||||||
Total fixed assets |
5,126,850 | 5,101,104 | ||||||
|
|
|
|
|||||
Total assets |
7,526,351 | 7,710,193 | ||||||
|
|
|
|
6
Nippon Steel & Sumitomo Metal Corporation (5401)
The Third Quarter of Fiscal 2018
7
Nippon Steel & Sumitomo Metal Corporation (5401)
The Third Quarter of Fiscal 2018
(2) Quarterly Consolidated Statements of Operations and
Quarterly Consolidated Statements of Comprehensive Income
Quarterly Consolidated Statements of Operations |
Millions of yen | |||||||
Third quarter of
Fiscal 2017 |
Third quarter of
Fiscal 2018 |
|||||||
Operating revenues : |
||||||||
Net sales |
4,164,556 | 4,519,103 | ||||||
Cost of sales |
3,641,588 | 3,962,839 | ||||||
|
|
|
|
|||||
Gross profit |
522,968 | 556,264 | ||||||
|
|
|
|
|||||
Selling, general and administrative expenses |
384,936 | 405,547 | ||||||
|
|
|
|
|||||
Operating profit |
138,031 | 150,717 | ||||||
|
|
|
|
|||||
Non-operating profit and loss : |
||||||||
Non-operating profit : |
||||||||
Interest income |
3,891 | 4,135 | ||||||
Dividend income |
15,574 | 17,667 | ||||||
Equity in profit of unconsolidated subsidiaries and affiliates |
93,896 | 105,725 | ||||||
Other |
29,442 | 30,368 | ||||||
|
|
|
|
|||||
142,804 | 157,897 | |||||||
|
|
|
|
|||||
Non-operating loss : |
||||||||
Interest expense |
15,486 | 13,570 | ||||||
Other |
39,865 | 41,759 | ||||||
|
|
|
|
|||||
55,352 | 55,329 | |||||||
|
|
|
|
|||||
Ordinary profit |
225,484 | 253,284 | ||||||
|
|
|
|
|||||
Extraordinary profit : |
||||||||
Gain on sales of investment in securities |
24,572 | 30,339 | ||||||
|
|
|
|
|||||
24,572 | 30,339 | |||||||
|
|
|
|
|||||
Extraordinary loss : |
||||||||
Loss on inactive facilities |
5,969 | | ||||||
Loss on disaster |
| 22,349 | ||||||
Restructuring loss |
6,200 | | ||||||
|
|
|
|
|||||
12,169 | 22,349 | |||||||
|
|
|
|
|||||
Profit before income taxes |
237,887 | 261,274 | ||||||
|
|
|
|
|||||
Income taxes - current and deferred |
62,501 | 30,037 | ||||||
|
|
|
|
|||||
Profit |
175,385 | 231,237 | ||||||
|
|
|
|
|||||
Profit(loss) attributable to non-controlling interests |
19,329 | (402 | ) | |||||
|
|
|
|
|||||
Profit attributable to owners of parent |
156,056 | 231,639 | ||||||
|
|
|
|
Quarterly Consolidated Statements of Comprehensive Income |
Millions of yen | |||||||
Third quarter of
Fiscal 2017 |
Third quarter of
Fiscal 2018 |
|||||||
Profit |
175,385 | 231,237 | ||||||
Other comprehensive income |
||||||||
Unrealized gains on available-for-sale securities |
96,021 | (131,657 | ) | |||||
Deferred hedge income |
(1,111 | ) | (274 | ) | ||||
Foreign currency translation adjustments |
9,290 | (25,544 | ) | |||||
Remeasurements of defined benefit plans |
24,869 | (18,512 | ) | |||||
Share of other comprehensive income of affiliates accounted for using equity method |
5,805 | (28,837 | ) | |||||
|
|
|
|
|||||
Total other comprehensive income |
134,876 | (204,826 | ) | |||||
|
|
|
|
|||||
Comprehensive income |
310,262 | 26,410 | ||||||
|
|
|
|
|||||
(breakdown) |
||||||||
Comprehensive income attributable to owners of parent |
284,116 | 31,802 | ||||||
Comprehensive income attributable to non-controlling interests |
26,146 | (5,391 | ) | |||||
|
|
|
|
8
Nippon Steel & Sumitomo Metal Corporation (5401)
The Third Quarter of Fiscal 2018
(3) Notes on Quarterly Consolidated Financial Statements
(Notes on Going Concern Assumption)
None
(Notes in Case of Significant Changes to Shareholders Equity)
None
(Adoption of Special Accounting Methods for the Preparation of Quarterly Consolidated Financial Statements)
The Company reasonably estimated the effective tax rate following application of tax-effect accounting on profit before income taxes for the consolidated fiscal year, which includes the quarterly period under review, and applied this percentage to quarterly profit before income taxes to determine income taxes.
(Changes in Accounting Principles, Changes in Accounting Estimates, and Retrospective Restatements)
At the beginning of the first quarter of fiscal 2018, the Company adopted the Implementation Guidance on Tax Effect Accounting (ASBJ Guidance No.28, February 16, 2018) and Implementation Guidance on Recoverability of Deferred Tax Assets (ASBJ Guidance No.26, February 16, 2018)
The application of this practical solution had no effect on the quarterly consolidated financial statements for the first half of fiscal 2018.
9
Nippon Steel & Sumitomo Metal Corporation (5401)
February 6, 2019
Nippon Steel & Sumitomo Metal Corporation
Code Number: 5401
Listings: Tokyo, Nagoya, Sapporo and Fukuoka Stock Exchanges
Contact: Fumiaki Ohnishi, General Manager, Public Relations Center-Tel: +81-3-6867-2130
Supplementary Information on the Financial Results
for the Third Quarter of Fiscal 2018
Japanese Steel Industry
1. Crude Steel Production
(million tons) | ||||||||||||||||||||||||||||
1st quarter | 2nd quarter | 1st half | 3rd quarter | 4th quarter | 2nd half | total | ||||||||||||||||||||||
2017FY |
26.09 | 25.94 | 52.04 | 26.39 | 26.41 | 52.80 | 104.84 | |||||||||||||||||||||
2018FY |
26.56 | 25.65 | 52.22 | 25.70 | ( * ) Approx.26.31 | Approx.52.01 | Approx.104.23 |
( * ) |
METI forecast |
2. Inventory Volume
At the end of: |
Inventory at
manufacturers and distributors |
Inventory
/shipment ratio |
Rolled sheets* 1 | H-flange beams* 2 | ||||||||||||||||
(million tons) | (%) | (million tons) | (million tons) | |||||||||||||||||
Jan. |
2017 | 5.60 | (148.6 | ) | 3.89 | 0.186 | ||||||||||||||
Feb. |
2017 | 5.64 | (151.9 | ) | 3.88 | 0.200 | ||||||||||||||
Mar. |
2017 | 5.37 | (124.8 | ) | 3.80 | 0.201 | ||||||||||||||
Apr. |
2017 | 5.54 | (151.7 | ) | 3.88 | 0.197 | ||||||||||||||
May |
2017 | 5.78 | (155.9 | ) | 4.09 | 0.197 | ||||||||||||||
June |
2017 | 5.56 | (139.9 | ) | 4.01 | 0.193 | ||||||||||||||
July |
2017 | 5.42 | (142.0 | ) | 3.95 | 0.189 | ||||||||||||||
Aug. |
2017 | 5.66 | (158.4 | ) | 4.14 | 0.179 | ||||||||||||||
Sep. |
2017 | 5.70 | (145.4 | ) | 4.16 | 0.182 | ||||||||||||||
Oct. |
2017 | 5.83 | (150.1 | ) | 4.11 | 0.176 | ||||||||||||||
Nov. |
2017 | 5.66 | (139.2 | ) | 4.00 | 0.173 | ||||||||||||||
Dec. |
2017 | 5.67 | (149.2 | ) | 4.04 | 0.175 | ||||||||||||||
Jan. |
2018 | 5.86 | (157.5 | ) | 4.15 | 0.185 | ||||||||||||||
Feb. |
2018 | 5.81 | (154.4 | ) | 4.12 | 0.196 | ||||||||||||||
Mar. |
2018 | 5.83 | (140.8 | ) | 4.21 | 0.200 | ||||||||||||||
Apr. |
2018 | 5.79 | (145.8 | ) | 4.15 | 0.196 | ||||||||||||||
May |
2018 | 5.87 | (150.1 | ) | 4.34 | 0.200 | ||||||||||||||
June |
2018 | 5.92 | (149.3 | ) | 4.41 | 0.207 | ||||||||||||||
July |
2018 | 5.68 | (143.1 | ) | 4.20 | 0.208 | ||||||||||||||
Aug. |
2018 | 6.01 | (170.5 | ) | 4.39 | 0.204 | ||||||||||||||
Sep. |
2018 | 6.23 | (176.6 | ) | 4.40 | 0.198 | ||||||||||||||
Oct. |
2018 | 5.87 | (132.0 | ) | 4.26 | 0.184 | ||||||||||||||
Nov. |
2018 | 5.59 | (133.8 | ) | 4.14 | 0.184 | ||||||||||||||
Dec.* 3 |
2018 | 5.71 | (149.2 | ) | 4.17 | 0.187 |
*1 |
Hot-rolled, cold-rolled and coated sheets |
*2 |
Inventories of distributors dealing with H-flange beams manufactured by Nippon Steel & Sumitomo Metal Corporation |
*3 |
Preliminary report |
- 1 -
Nippon Steel & Sumitomo Metal Corporation
NSSMC
3. Pig Iron Production
(million tons) | ||||||||||||||||||||||||||||
1st quarter | 2nd quarter | 1st half | 3rd quarter | 4th quarter | 2nd half | total | ||||||||||||||||||||||
2017FY |
9.92 | 10.13 | 20.05 | 10.08 | 10.49 | 20.57 | 40.61 | |||||||||||||||||||||
2018FY |
10.25 | 10.24 | 20.49 | 10.24 | Approx.10.50 | Approx.20.70 | Approx.41.20 |
Including Hokkai Iron & Coke Co., Ltd. and Nippon Steel & Sumikin Koutetsu Wakayama Corporation* 1
4. Crude Steel Production
(Consolidated basis (The Company and its consolidated subsidiaries))
(Non-consolidated basis)
(million tons) | ||||||||||||||||||||||||||||
1st quarter | 2nd quarter | 1st half | 3rd quarter | 4th quarter | 2nd half | total | ||||||||||||||||||||||
2017FY |
9.90 | 10.19 | 20.09 | 10.08 | 10.50 | 20.58 | 40.67 | |||||||||||||||||||||
2018FY |
10.29 | 10.21 | 20.50 | 10.29 | Approx.10.50 | Approx.20.80 | Approx.41.30 |
Including Nippon Steel & Sumikin Koutetsu Wakayama Corporation* 1
5. Steel Products Shipment
(million tons) | ||||||||||||||||||||||||||||
1st quarter | 2nd quarter | 1st half | 3rd quarter | 4th quarter | 2nd half | total | ||||||||||||||||||||||
2017FY |
9.34 | 9.39 | 18.72 | 9.39 | 9.67 | 19.07 | 37.79 | |||||||||||||||||||||
2018FY |
9.57 | 8.99 | 18.56 | 9.92 | Approx.9.70 | Approx.19.60 | Approx.38.10 |
Including Nippon Steel & Sumikin Koutetsu Wakayama Corporation* 1
6. Average Price of Steel Products
(thousands of yen / ton) | ||||||||||||||||||||||||||||
1st quarter | 2nd quarter | 1st half | 3rd quarter | 4th quarter | 2nd half | total | ||||||||||||||||||||||
2017FY |
84.0 | 83.0 | 83.5 | 86.0 | 85.7 | 85.8 | 84.7 | |||||||||||||||||||||
2018FY |
87.2 | 90.2 | 88.7 | 91.5 | Approx.90 | Approx.90 | Approx.89 |
Weighted average of the Company and Nippon Steel & Sumikin Koutetsu Wakayama Corporation* 1
- 2 -
Nippon Steel & Sumitomo Metal Corporation
7. Export Ratio of Steel Products (Value basis)
(%) | ||||||||||||||||||||||||||||
1st quarter | 2nd quarter | 1st half | 3rd quarter | 4th quarter | 2nd half | total | ||||||||||||||||||||||
2017FY |
42 | 41 | 42 | 41 | 41 | 41 | 41 | |||||||||||||||||||||
2018FY |
41 | 41 | 41 | 40 | Approx.37 | Approx.39 | Approx.40 |
Weighted average of the Company and Nippon Steel & Sumikin Koutetsu Wakayama Corporation* 1
8. Foreign Exchange Rate
(¥/$) | ||||||||||||||||||||||||||||
1st quarter | 2nd quarter | 1st half | 3rd quarter | 4th quarter | 2nd half | total | ||||||||||||||||||||||
2017FY |
111 | 111 | 111 | 113 | 110 | 111 | 111 | |||||||||||||||||||||
2018FY |
108 | 111 | 109 | 113 | Approx.110 | Approx.112 | Approx.111 |
9. Amount of Capital Expenditure and Depreciation
(Consolidated basis)
(billions of yen) | ||||||||||||||||||
Capital Expenditure | Depreciation | |||||||||||||||||
2017FY |
411.9 | 340.7 | ||||||||||||||||
2018FY* 2 |
Approx.440.0 | Approx.420.0 |
*1 |
Nippon Steel & Sumikin Koutetsu Wakayama Corporation was merged into NSSMC on April 1, 2018. |
*2 |
included for impacts of transition to IFRS and other impacts |
- 3 -
February 6, 2019
Company name: |
Nippon Steel & Sumitomo Metal Corporation | |
Representative: |
Kosei Shindo, Representative Director and President | |
Code number: |
5401 | |
Contact: |
Fumiaki Ohnishi, General Manager, Public Relations Center | |
Telephone: |
+81-3-6867-2130 |
Announcement of Revision in Forecasts for Dividend
The Board of Directors of Nippon Steel & Sumitomo Metal Corporation (the Company) held on February 6, 2019 has decided to revise the forecasts for year-end dividend from retained earnings as follows.
1. Reason for the Revision
When the first half results were announced on November 2, the Company had not determined a year-end dividend distribution amount for the current fiscal year ending March 31 2019. In accordance with the basic profit distribution policy described previously announced, after due consideration of the earnings forecasts for the year and other factors, the Company intends to distribute a dividend of ¥40 per share at the end of the second half (year-end). This would bring the full-year dividend distribution amount to ¥80 per share, representing a consolidated dividend payout ratio of approximately 31% (based on IFRS).
2. Details for the Revision
(yen) | ||||||||||||
Dividends per share | ||||||||||||
End of the first half | End of the second half | Full fiscal year | ||||||||||
Previous forecasts
(Data released on November 2, 2018) |
Undecided | Undecided | ||||||||||
Revised forecasts |
40 | 80 | ||||||||||
Actual for the current fiscal year ending March 31, 2019 | 40 | |||||||||||
Actual for the previous fiscal year ended March 31, 2018 | 30 | 40 | 70 |
To Whom It May Concern,
Listed Companys Name: |
Nippon Steel & Sumitomo Metal Corporation | |
Representative: |
Kosei Shindo, Representative Director and President | |
(Code Number: |
5401, First Section of the TSE, First Section of the
NSE, FSE, and SSE) |
|
Contact: |
Fumiaki Onishi, General Manager, Public Relations Center |
|
(Telephone: |
+81-3-6867-2135, 2146, 2977, 3419) | |
Companys Name: |
Nisshin Steel Co., Ltd. | |
Representative: |
Kinya Yanagawa, President & CEO,
and Representative Director |
|
Contact: |
Hirokazu Kuwasako, Executive Officer,
General Manager, General Administration Dept. |
|
(Telephone: |
+81-3-3216-5566) | |
Companys Name: |
Nippon Steel & Sumikin Stainless Steel Corporation | |
Representative: |
Hitoshi Ito, Representative Director and President | |
Contact: |
Manabu Tani, Executive Officer, General Manager, Corporate Planning Div. |
|
(Telephone: |
+81-3-6841-4853) |
Notice Regarding the Execution of a Basic Integration Agreement for the Integration of the Stainless Steel Sheet Businesses of Nippon Steel & Sumitomo Metal Corporation, Nisshin Steel Co., Ltd. and Nippon Steel & Sumikin Stainless Steel Corporation, and the Execution of a Company Split (Simplified Absorption-Type Split) Agreement Between Nippon Steel & Sumitomo Metal Corporation and Nippon Steel & Sumikin Stainless Steel Corporation
Nippon Steel & Sumitomo Metal Corporation ( NSSMC ) and its group companies, Nisshin Steel Co., Ltd. ( Nisshin Steel ) and Nippon Steel & Sumikin Stainless Steel Corporation ( NSSC ), pursuant to the Basic Agreement regarding the Integration of the Stainless Steel Sheet Business executed as of May 16, 2018, resolved at their respective board of directors meetings held today to integrate the stainless steel sheet business of the NSSMC Group (the Integration ) in order to maximize synergies in the NSSMC Groups stainless steel business at an early stage, by having NSSC succeed a part of the special stainless steel strip business of NSSMC and the stainless steel sheet business of Nisshin Steel, effective April 1, 2019, and entered into the Basic Integration Agreement regarding the Integration as of today.
Additionally, NSSMC and NSSC, at their respective board of directors meetings, resolved to have NSSC succeed a part of NSSMCs special stainless steel strip business (excluding pure nickel, nickel alloy and clad steel business) (the Subject of Business Succession ) by way of an absorption-type company split (the Company Split ), effective April 1, 2019, wherein NSSMC will be the split company and NSSC will be the successor company, and entered into the Company Split Agreement (the Company Split Agreement ) as of today.
1
As the Company Split is a company split wherein NSSC, a wholly owned subsidiary of NSSMC is the successor company, some disclosure details have been omitted.
The details of the foregoing resolutions are announced as follows.
I. |
Regarding the Integration |
1. |
Purpose of the Integration |
NSSMC, Nisshin Steel and NSSC, since Nisshin Steel became a subsidiary of NSSMC in March 2017, have proceeded to develop their alliance and complement each others respective stainless steel businesses in the areas of production, sale and procurement. However, in order to respond to harsh business circumstances such as the substantial over-supply in Asian markets and future changes in social and industrial structure, and to further develop and grow, NSSMC, Nisshin Steel and NSSC reached the conclusion that it is imperative that they work toward the maximization of synergies by uniting forces in the stainless steel sheet business of the NSSMC Group, sharing and expanding the respective strengths of the three companies, and addressing their weaknesses.
NSSMC, Nisshin Steel and NSSC have, at this time, agreed to integrate the stainless steel sheet business of each company, effective April 1, 2019, aiming for future growth and development by creating further synergies as follows: by bringing together management resources for the stainless steel sheet business cultivated so far by each company, integrating respective business strategies, creating value for customers not only through more efficient organizational and operational systems but also by providing optimal products and processing technology/services, facilitating world-leading technical developments, thoroughly pursuing best practices, and building a framework of optimal production systems.
2. |
Details of the Integration |
The three companies, namely NSSMC, Nisshin Steel and NSSC, have agreed to have NSSC succeed a part of the special stainless steel strip business (excluding pure nickel, nickel alloy and clad steel business) contained within NSSMCs special stainless steel business (steel sheets and shaped steel), by way of an absorption-type company split wherein NSSMC will be the split company and NSSC will be the successor company; and have NSSC succeed the stainless steel sheet business (including the strip and steel plate businesses) contained within Nisshin Steels stainless steel business (steel sheets, steel pipes and tubes), by way of an absorption-type company split wherein Nisshin Steel will be the split company and NSSC will be the successor company, effective April 1, 2019.
2
II. |
Regarding the Company Split |
1. |
Outline of the Company Split |
(1) |
Schedule of the Company Split |
Board of directors meeting to approve execution of the Company Split Agreement (NSSMC and NSSC) |
February 6, 2019 |
|
Execution of the Company Split Agreement (NSSMC and NSSC) |
February 6, 2019 |
|
Date of the Company Split (the effective date) |
April 1, 2019 (planned) |
(Note) |
With regard to NSSMC, the Company Split will be conducted through simplified absorption-type split procedures which do not require the approval at a shareholders meeting pursuant to Article 784, Paragraph 2 of the Companies Act, and with regard to NSSC, the Company Split will be conducted through short-form absorption-type split procedures which do not require the approval at a shareholders meeting pursuant to Article 796, Paragraph 1 of the Companies Act. |
(2) |
Method of the Company Split |
An absorption-type split wherein NSSMC will be the split company and NSSC will be the successor company.
(3) |
Allotment Details Regarding the Company Split |
As NSSC is a wholly-owned subsidiary of NSSMC, there will be no allocation of the shares or other assets to NSSMC in conjunction with the Company Split.
(4) |
Treatment of Stock Acquisition Rights and Bonds with Stock Acquisition Rights upon the Company Split |
Not applicable.
(5) |
Stated Capital to Be Increased or Decreased as a Result of the Company Split |
There will be no change in NSSMCs stated capital as a result of the Company Split.
(6) |
Rights and Obligations Succeeded by the Successor Company |
NSSC will succeed from NSSMC the contractual positions and intellectual property rights relating to the Subject of Business Succession and the rights and obligations attached thereto (however, excluding the receivables and payables incurred for causes occurring prior to the effective date).
(7) |
Performance Prospects of the Liabilities |
NSSMC believes that all liabilities incurred by NSSMC and NSSC can be performed even on and after the effective date of the Company Split.
3
2. |
Outline of the Companies Involved in the Company Split |
(In millions of yen unless otherwise specified)
4
3. |
Outline of the Business Division to be Split |
(1) |
Business Description of the Division to be Split |
Sales of special stainless steel strip products (excluding pure nickel, nickel alloy and clad steel)
(2) |
Operating Results of the Division to be Split (fiscal year ended March 2018) |
NSSMC (Special SUS) | ||||
Consolidated Net Sales (Billions of yen) |
4.4 |
(3) |
Items of Asset and Liabilities to be Split and the Amount Thereof |
Contractual positions (commercial rights, intellectual property rights, etc.) relating to the special stainless steel strip business (excluding pure nickel, nickel alloy and clad steel business)
4. |
Status of the Companies After the Company Split |
Split Company in an Absorption-Type Split |
Successor Company in an Absorption-Type Split |
|||||||||
(1) | Name |
NIPPON STEEL CORPORATION (*Scheduled to change the company name on April 1, 2019, as stated above) |
NIPPON STEEL Stainless Steel Corporation (*Scheduled to change the company name on April 1, 2019, as stated above) |
|||||||
(2) | Location | 6-1, Marunouchi 2-chome, Chiyoda-ku, Tokyo | 8-2, Marunouchi 1-chome, Chiyoda-ku, Tokyo | |||||||
(3) | Name and Title of Representative |
Eiji Hashimoto, Representative Director and President (*Scheduled to assume office on April 1, 2019) |
Hitoshi Ito, Representative Director and President | |||||||
(4) | Description of Business Activities | Steelmaking and steel fabrication, Engineering, Chemical and Material, and System solutions | Production and sale of stainless steel products | |||||||
(5) | Capital | 419,524 million yen | 5,000 million yen | |||||||
(6) | Fiscal Year End | March 31 | March 31 |
5. |
Future Prospects |
Given that the Company Split is a company split between NSSMC and NSSC, a wholly owned subsidiary of NSSMC, the effects of the Company Split on the results of NSSMC are expected to be negligible.
End
5
(Reference) |
Consolidated financial forecast for the current fiscal year (announced on February 6, 2019) and consolidated operating results for the previous fiscal year (IFRS) |
Revenue |
Business Profit |
Profit Attributable to Owners of Parent |
||||
Financial Forecast for the Current Fiscal Year (FY ending March 2019) | 6,200,000 million yen | 330,000 million yen | 230,000 million yen | |||
Operating Results for the Previous Fiscal Year (FY ended March 2018) | 5,712,965 million yen | 288,700 million yen | 180,832 million yen |
6
Nippon Steel & Sumitomo Metal Corporation
Nisshin Steel Co., Ltd.
Nippon Steel & Sumikin Stainless Steel Corporation
Conclusion of integrated basic agreement on integration of stainless steel sheet businesses
To achieve the timely and utmost synergy of the stainless steel business of the NSSMC Group, Nippon Steel & Sumitomo Metal Corporation (hereinafter referred to as NSSMC), Nisshin Steel Co., Ltd. (hereinafter referred to as Nisshin Steel) and Nippon Steel & Sumikin Stainless Steel Corporation (hereinafter referred to as NSSC) concluded a basic agreement on May 16, 2018 to enable NSSC to succeed a part of the steel sheet business among NSSC special stainless steel business (steel sheets, shaped steel) and the steel sheet business among Nisshin Steel stainless steel business (steel sheets, steel pipes and tubes) (hereinafter referred to as this integration), and have been proceeding with the investigation to date based on the said basic agreement.
Then on January 1, 2019, since Nisshin Steel became a wholly-owned subsidiary of NSSMC (hereinafter wholly-owned subsidiary of NSSMC), we today concluded an integrated basic agreement between the three companies concerning this integration on April 1, 2019, and thus hereby report the details below.
1. Purpose of this integration
Since Nisshin Steel became a wholly-owned subsidiary of NSSMC in March 2017, NSSMC, Nisshin Steel and NSSC have been promoting cooperation and mutual understanding in each field of manufacturing, sales, procurement, etc. of the stainless steel business. However, in order to deal with the harsh business environment such as significant oversupply in Asian markets and future changes in social and industrial structures, and achieve development and growth, we have concluded that there is an urgent need to handle the maximization of synergy through assembling the collective efforts of the stainless steel business of the NSSMC Group, sharing and expanding the strengths of the three companies, and reinforcing the weaknesses.
NSSMC, Nisshin Steel and NSSC have now decided to integrate each stainless steel business on April 1, 2019 by gathering the management resources for the stainless steel business fostered by each company, integrating the corporate strategy, and through not only the promotion of efficiency of the organizational and operating structure, but the creation of customer values by providing on-target products, application processing technology and services, the promotion of our world-leading technical development, the thorough pursuit of best practices and the building of an optimum production facility system, thereby constructing further synergy and promoting future growth and development.
2. Contents |
of this integration |
(1) |
Business integration method |
Setting April 1, 2019 as the date of entry into force, the three companies, NSSMC, Nisshin Steel and NSSC, use the company split method to make NSSMC a split company and NSSC a succeeding company, and have NSSC succeed part of the special stainless steel sheet business (excluding pure nickel/nickel alloy and clad steel sheet business) of NSSMC special stainless steel businesses (steel sheets, shaped steel). They also use the company split method of making Nisshin Steel a split company and NSSC as a succeeding company, and have NSSC succeed the stainless steel sheet business (including steel sheet and steel plate business) of Nisshin Steel stainless steel businesses (steel sheets, steel pipes and tubes).
(2) |
Overview of integrated company |
Trade name: |
NIPPON STEEL Stainless Steel Corporation | |
Location of head office: |
1-8-2, Marunouchi, Chiyoda-ku, Tokyo | |
Description of business: |
Manufacturing and sales of stainless steel (product type: steel sheet, steel plate, bar and wire rod, billet), etc. | |
Number of employees: |
About 3,200 | |
Sales volume: |
About 1.5 million t/year | |
Sales amount: |
About 460 billion yen, consolidated | |
Manufacturing sites: |
Kashima, Kinuura, Hikari, Shunan, Yawata | |
Group companies: |
11 domestic and 9 overseas consolidated subsidiaries and companies accounted for using the equity method |
3. Schedules |
for this integration |
February 6, 2019 |
Integrated basic agreement concluded | |
April 1, 2019 (planned) |
Execution date of this integration (date of entry into force) |
* |
Reference: Overview of companies involved in this integration (as of March 31, 2018) |
(1) | Name |
Nippon Steel & Sumitomo Metal Corporation |
Nisshin Steel Co., Ltd. |
Nippon Steel & Sumikin Stainless Steel Corporation |
||||
(2) | Location |
2-6-1, Marunouchi, Chiyoda-ku, Tokyo |
3-4-1, Marunouchi, Chiyoda-ku, Tokyo |
1-8-2, Marunouchi, Chiyoda-ku, Tokyo |
||||
(3) |
Title and name of representative |
Kosei Shindo, Representative Director and President |
Kinya Yanagawa, President & Chief Executive Officer and Representative Director |
Hitoshi Ito, Representative Director and President |
||||
(4) |
Description of business |
Steelmaking, engineering, chemical and material, system solutions |
Steelmaking business (manufacturing and sales of steel products) |
Manufacturing and sales of stainless steel |
||||
(5) | Capital fund | 419.524 billion yen | 30 billion yen | 5 billion yen | ||||
(6) |
Date of foundation |
April 1, 1950 | October 1, 2012 | October 1, 2003 | ||||
(7) |
Amount of sales (2017 FY) |
5,668.663 billion yen | 614.196 billion yen | 258.804 billion yen | ||||
(8) |
Number of employees |
(consolidated) 93,557 | (consolidated) 7,859 | (consolidated) 2,302 |
(Contacts for inquiries)
NSSMC Public Relations Center Tel.03-6867-2135, 2146, 2977, 3419
Nisshin Steel, General Administration Dept., Secretary/ Public Relations Team Tel.03-3216-5566
NSSC Planning Dept. Tel.03-6841-4853
1 Year Nippon Steel (PK) Chart |
1 Month Nippon Steel (PK) Chart |
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