Kobe Steel forecasts net income to plunge 85.4%

Japan’s based Kobe Steel Ltd. said net income for fiscal year (FY) 2008 ending March 2009 would plunge 85.4% year-on-year to ¥13 billion (US$141.6 million), as a result of “additional extraordinary loss on the write-down of investments in securities in the third quarter.” Steel output would also drop by 9%, from 8.07 MMT in FY 2007 to 7.31 million metric tons (MMT) in FY 2008. “Due to the worldwide economic slump, the business environment for the Kobe Steel Group is anticipated to become increasingly severe in the fourth quarter (January to March 2009),” the company stated. (February 9, 2009)