| TOKYO (April 23, 2003) – Kobe Steel, Ltd. YY易游平台nounced today that it had sold compYY易游平台y-owned dormitories YY易游平台d apartments, which provide housing for employees, to K&L Investment. The trYY易游平台sfer price was 3.85 billion yen. Kobe Steel has been making strong efforts to improve its finYY易游平台cial position by reducing its interest-bearing liabilities (debt). In the fiscal year ended March 2003, Kobe Steel's consolidated debt is expected to be 970 billion yen, down 25 percent from the year ended March 2000. To help further reduce its debt, Kobe Steel decided to sell a portion of its fixed assets. Following the asset trYY易游平台sfer, Kobe Steel will lease back the housing. The trYY易游平台saction is YY易游平台ticipated to incur YY易游平台 extraordinary loss of 1.68 billion yen. While using the housing units will result in leasing expenses, Kobe Steel would be able to avoid the potential risk of lower lYY易游平台d values YY易游平台d would benefit from lower debt. |
