Japan's JFE books record loss, aims to cut costs and sell assets
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Author : Kevin
Update time : 2020-05-12 21:15:46
TOKYO (Reuters) - JFE Holdings Inc (5411.T) on Tuesday signalled plans to shore up cash flow, as higher raw materials costs and weaker demand from a global economy that was slowing even before the coronavirus pandemic drove it to a record net loss.
The 197.7 billion yen ($1.84 billion) year to March loss and a further drop in demand linked directly to the outbreak mean Japan’s second-biggest steelmaker face “the highest risk since our foundation” in 2002, Executive Vice President Masashi Terahata said.
To ride out the COVID-19 crisis, it aims to trim annual costs by 100 billion yen while stepping up selling its stakes it holds in other companies, reviewing investment plans and slashing inventories, he told a news conference.
The steelmaker did not give earnings guidance for the current financial year, saying it was difficult to predict the full impact of the outbreak on its business.
The record loss, due to weaker export prices and a hefty impairment loss on its local plants, compared with a revised March forecast of a 190 billion yen loss and a net profit of 163.5 billion yen a year earlier.
