Kobe Steel, Ltd.
FY2025 3rd Quarter Earnings Presentation Materials
For FY2025 3rd quarter, net sales were 1,778 billion yen, a decrease of 105.9 billion yen YoY; ordinary income was 89.5 billion yen, down 43.3 billion yen YoY; and net income attributable to owners of parent was 84.3 billion yen, down 32.5 billion yen YoY. The full-year outlook remains unchanged with net sales of 2,440 billion yen, ordinary income of 110 billion yen, and net income attributable to owners of parent of 100 billion yen.
Key Figures
- Net Sales (Cumulative 3Q): 1,778 billion yen (YoY △105.9 billion yen)
- Ordinary Income (Cumulative 3Q): 89.5 billion yen (YoY △43.3 billion yen)
- Net Income Attributable to Owners of Parent (Cumulative 3Q): 84.3 billion yen (YoY △32.5 billion yen)
- Full-Year Net Sales Outlook: 2,440 billion yen (Compared to previous forecast △25 billion yen)
- Full-Year Ordinary Income Outlook: 110 billion yen (Compared to previous forecast ±0 billion yen)
- Full-Year Net Income Outlook: 100 billion yen (Compared to previous forecast ±0 billion yen)
- Free Cash Flow: 110 billion yen (Compared to previous forecast +10 billion yen)
- Year-End Dividend: 40 yen/share (Annual 80 yen, no change from previous policy)
AI要約
Overview of FY2025 3rd Quarter Performance
Net sales for FY2025 3rd quarter were 1,778 billion yen, down 105.9 billion yen YoY. Ordinary income was 89.5 billion yen, down 43.3 billion yen YoY, and net income attributable to owners of parent was 84.3 billion yen, down 32.5 billion yen YoY. Key factors include deterioration in quantity mix in materials-related businesses, increased fixed costs, loss of compensation income in construction machinery, reduction in profit impact from timing differences in power fuel cost adjustments, and worsening inventory valuation impact. By segment, decreases occurred in steel, construction machinery, and power, while machinery-related businesses recorded profit increases.
FY2025 Full-Year Outlook and Shareholder Returns
The full-year outlook remains nearly unchanged with net sales projected at 2,440 billion yen, ordinary income at 110 billion yen, and net income attributable to owners of parent at 100 billion yen. Although a significant demand recovery is unlikely, gains are expected from increased profits in machinery-related businesses and improved inventory valuation impacts. Free cash flow has been revised upwards to 110 billion yen due to shifts in investment payment timing. Dividends are planned at 40 yen per share for the year-end and 80 yen annually, consistent with the previous policy. ROIC is expected to be approximately 5%, and ROE approximately 8%.
