Kobe Steel Reports 9-Month Profit Decline, Cuts Sales Forecast

Kobe Steel (7013.T) reported a 23% year-over-year decline in nine-month net profit to ¥1.34 billion (USD 169 million) as weak demand and steel price weakness pressured results. The company reaffirmed its full-year earnings outlook of ¥10.5 billion, down from ¥11.5 billion, but cut its sales forecast to ¥1.65 trillion from ¥1.7 trillion, citing ongoing pricing pressures and reduced output. Second-quarter production was 1.8 million tons, a 4.5% drop from the same period in 2024, reflecting continued soft demand in Japan and abroad. The revision reflects a more cautious macro outlook and a strategic shift toward cost optimization and higher-margin products.