Nippon Steel has said that it registered a net loss in the April-June quarter, squeezed by a restructuring charge related to its acquisition of United States Steel.
The Japanese steelmaker said Friday that it had posted a consolidated net loss of ¥195.8 billion for the fiscal first quarter, against the year-before profit of ¥157.5 billion.
Nippon Steel's sales fell 8.3% to ¥2.01 trillion, while its business profit dropped 61.2% to ¥92 billion.
The company booked a restructuring charge of about ¥230 billion related to the dissolution of a joint venture with ArcelorMittal, a step designed to allay competition concern over the takeover of U.S. Steel.
The acquisition of U.S. Steel in June is expected to contribute to the Japanese steelmaker's earnings starting in July.
For the year ending in March 2026, Nippon Steel expects record sales of ¥10 trillion. It raised its business profit forecast to ¥480 billion from ¥400 billion.
Still, the company is braced for a net loss of ¥40 billion, compared with the previous projection of ¥200 billion in profit.
Nippon Steel Vice Chairman Takahiro Mori told a news conference in Tokyo that the U.S. Steel takeover is set to boost profits by about ¥80 billion in the year.
U.S. Steel will contribute about ¥250 billion to profits in the year ending in March 2029, following updates to production facilities, he said.
"There will be a considerable effect just by transferring our technology" to U.S. Steel, he said.
Nippon Steel also said it will take full control of Krosaki Harima, a subsidiary that manufactures refractory bricks.
With your current subscription plan you can comment on stories. However, before writing your first comment, please create a display name in the Profile section of your subscriber account page.