Kobe Steel, Ltd., The Current Fiscal Year Ordinary Profit Revised Downward by 13%

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Thu Nov 7, 2024 3:30 pm JST Earnings

5406 Kobe Steel, Ltd. 【J-GAAP】

Earnings Report

Kobe Steel, Ltd. <5406> [TSE-P] announced its financial results after the market closed on November 7th (15:30). The consolidated ordinary profit for the cumulative second quarter of the fiscal year ending March 2025 (April to September) decreased by 22.5% from the same period last year to 70.9 billion yen.

In addition, the full-year consolidated ordinary profit has downwardly by 13.3%, from the previous forecast of 150 billion yen to 130 billion yen (compared to 160 billion yen in the previous period), leading to an increase in the profit decline rate from 6.8% to 19.2%.

Based on the first-half performance announced by the company and the full-year plan, our calculation indicates that the consolidated ordinary profit for the October to March period (second half) is expected to decrease by 14.8% from the same period last year to 59 billion yen.

In the most recent three-month period, from July to September (2Q), the consolidated ordinary profit dropped to 35.9 billion yen, a 35.5% decrease compared to the same period last year. The operating profit margin worsened from 8.9% in the same period last year to 7.1%.

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Actual Results

Accumulated Results 2nd Quarter

Fiscal Year	Revenue	Operating Profit	Ordinary Profit	Net Profit	Adj. EPS	Progress Rate vs. First Half	Announce	Accounting Standards
Apr - Sep, 2022	1,169,657	19,771	41,826	28,008	71.0	39.1	Nov 9, 2022	J-GAAP
Apr - Sep, 2023	1,253,833	92,142	91,601	80,348	203.4	56.9	Nov 9, 2023	J-GAAP
Apr - Sep, 2024	1,248,556	77,705	70,960	56,583	143.4	54.6	Nov 7, 2024	J-GAAP
YoY	-0.4%	-15.7%	-22.5%	-29.6%	-29.5%

First Half Results vs. Previous Guidance

Fiscal Year	Revenue	Operating Profit	Ordinary Profit	Net Profit	Adj. EPS	Adj. Dividend	Announce	Accounting Standards
Apr - Sep, 2024 Guidance	1,270,000	70,000	65,000	55,000	139.4	45	Aug 7, 2024	J-GAAP
Apr - Sep, 2024 Results	1,248,556	77,705	70,960	56,583	143.4	45	Nov 7, 2024	J-GAAP
Revision Rate	-1.7%	+11.0%	+9.2%	+2.9%	+2.8%

Guidance Update

Full Year Update

Fiscal Year	Revenue	Operating Profit	Ordinary Profit	Net Profit	Adj. EPS	Adj. Dividend	Announce	Accounting Standards
Mar, 2025 Prev	2,660,000	165,000	150,000	120,000	304.1	90	May 9, 2024	J-GAAP
Mar, 2025 New	2,600,000	140,000	130,000	120,000	304.1	90	Nov 7, 2024	J-GAAP
Revision Rate	-2.3%	-15.2%	-13.3%	0.0%	0.0%

Current Period Guidance

Second Half Results

Fiscal Year	Revenue	Operating Profit	Ordinary Profit	Net Profit	Adj. EPS	Adj. Dividend	Announce	Accounting Standards
Oct - Mar, 2023	1,289,309	94,486	69,322	29,204	73.9	45	May 9, 2024	J-GAAP
Oct - Mar, 2024 Guidance	1,351,444	62,295	59,040	63,417	160.7	45	Nov 7, 2024	J-GAAP
YoY	+4.8%	-34.1%	-14.8%	+117.2%	+117.3%

Current Period Guidance

Fiscal Year	Revenue	Operating Profit	Ordinary Profit	Net Profit	Adj. EPS	Adj. Dividend	Announce	Accounting Standards
Mar, 2023	2,472,508	86,365	106,837	72,566	183.8	40	May 11, 2023	J-GAAP
Mar, 2024	2,543,142	186,628	160,923	109,552	277.4	90	May 9, 2024	J-GAAP
Mar, 2025 Guidance	2,600,000	140,000	130,000	120,000	304.1	90	Nov 7, 2024	J-GAAP
YoY	+2.2%	-25.0%	-19.2%	+9.5%	+9.6%

Quarterly Results

Fiscal Year	Revenue	Operating Profit	Ordinary Profit	Net Profit	Adj. EPS	Operating Profit Margin	Announce	Accounting Standards
Jul - Sep, 2023	655,144	58,102	55,697	54,897	139.0	8.9	Nov 9, 2023	J-GAAP
Oct - Dec, 2023	619,874	46,097	42,325	29,379	74.4	7.4	Feb 9, 2024	J-GAAP
Jan - Mar, 2024	669,435	48,389	26,997	-175	-0.4	7.2	May 9, 2024	J-GAAP
Apr - Jun, 2024	590,733	31,072	35,045	24,044	60.9	5.3	Aug 7, 2024	J-GAAP
Jul - Sep, 2024	657,823	46,633	35,915	32,539	82.4	7.1	Nov 7, 2024	J-GAAP
YoY	+0.4%	-19.7%	-35.5%	-40.7%	-40.7%