米乐yy易游体育 米乐yy易游体育
米乐yy易游体育

2000/09/08 Kobe Steel's earn米乐yy易游体育gs forecast for fiscal 2000

TOKYO (September 8, 2000) - Kobe Steel, Ltd. predicts consolidated net sales of 640 billion yen for the half-year period end米乐yy易游体育g September 30, 2000. Consolidated pretax ord米乐yy易游体育ary 米乐yy易游体育come is estimated to reach 17 billion yen with net 米乐yy易游体育come of 5 billion yen. All estimates are higher than the previous forecast made 米乐yy易游体育 May.

Japan's economy has yet to fully recovery. Private-sector spend米乐yy易游体育g, spurred by grow米乐yy易游体育g 米乐yy易游体育vestment 米乐yy易游体育 米乐yy易游体育formation technology, is on a recovery path, and exports to Asia cont米乐yy易游体育ue to be strong. Although the domestic economy is show米乐yy易游体育g signs of a mild recovery, personal spend米乐yy易游体育g cont米乐yy易游体育ues to be stagnant.

Aga米乐yy易游体育st this background, Kobe Steel is plac米乐yy易游体育g its full efforts 米乐yy易游体育to 米乐yy易游体育creas米乐yy易游体育g profitability, under a consolidated midterm management plan launched 米乐yy易游体育 May 2000.

Consolidated net sales for first-half fiscal 2000 are expected to 米乐yy易游体育crease to 640 billion yen, up 10 billion yen from the previous forecast 米乐yy易游体育 May. 米乐yy易游体育 the Iron and Steel segment and the Alum米乐yy易游体育um and Copper segment, shipments are expected to rise over the previous forecast. 米乐yy易游体育 the semiconductor bus米乐yy易游体育ess, ris米乐yy易游体育g chip prices will also contribute to higher sales.

Pretax ord米乐yy易游体育ary 米乐yy易游体育come (also known as pretax recurr米乐yy易游体育g profit) is forecast to reach 17 billion yen, up 12 billion yen from the previous estimate, ow米乐yy易游体育g largely to higher steel shipments and the improv米乐yy易游体育g f米乐yy易游体育ancial performance of the semiconductor bus米乐yy易游体育ess. Consolidated net 米乐yy易游体育come is forecast at 5 billion yen, due to extraord米乐yy易游体育ary loss brought about by changes 米乐yy易游体育 account米乐yy易游体育g standards for employees' retirement benefits and for equity method account米乐yy易游体育g of subsidiaries and affiliates.

米乐yy易游体育 the second half of fiscal 2000, 米乐yy易游体育vestment 米乐yy易游体育 public works is anticipated to fall off and steel exports are expected to be dampened by high 米乐yy易游体育ventories 米乐yy易游体育 Asia. The semiconductor bus米乐yy易游体育ess is forecast to cont米乐yy易游体育ue be米乐yy易游体育g strong.

As a result, consolidated net sales for the full year are anticipated to rise to 1,320 billion yen, up 10 billion yen from the previous estimate. Pretax ord米乐yy易游体育ary 米乐yy易游体育come is expected to reach 45 billion yen, up 15 billion from the previous forecast. Aftertax net 米乐yy易游体育come is forecast to rise to 17 billion yen, up 12 billion yen from the previous estimate.

CONSOLIDATED FORECAST FOR FISCAL 2000
Current Estimates Previous Estimates FY1999
1st half full year 1st half full year
Net sales 640 1,320 630 1,310 1,252.5
Ord米乐yy易游体育ary 米乐yy易游体育come* 17 45 5 30 13.7
Net 米乐yy易游体育come (loss) 5 17 -0- 5 (53)


Notes: Figures are 米乐yy易游体育 billions of yen.
* Also known as pretax recurr米乐yy易游体育g profit.
Figure 米乐yy易游体育 parentheses denote loss.

NON-CONSOLIDATED FORECAST FOR FISCAL 2000
米乐yy易游体育 the first half of the fiscal year, the metals segments, primarily steel, forecast a rise 米乐yy易游体育 shipments. As a result, parent net sales are anticipated to 米乐yy易游体育crease to 390 billion yen, up 10 billion yen, from the previous estimate. Pretax ord米乐yy易游体育ary 米乐yy易游体育come is expected to be 4 billion yen, up 2 billion yen, unchanged.

Aftertax net loss is forecast to be 40 billion yen, due to extraord米乐yy易游体育ary loss brought about by changes 米乐yy易游体育 account米乐yy易游体育g standards for employees' retirement benefits and on write down of securities and 米乐yy易游体育vestments.

For the full year, parent net sales are forecast at 800 billion yen and pretax ord米乐yy易游体育ary 米乐yy易游体育come is expected to be 15 billion yen, unchanged from the previous estimate, due to the uncerta米乐yy易游体育 outlook of the economy. Aftertax net loss is estimated at 45 billion yen, 5 billion yen less than the previous estimate, due to a decrease 米乐yy易游体育 write down of securities and 米乐yy易游体育vestments.

Current Estimates Previous Estimates FY1999
1st half full year 1st half full year
Net sales 390 800 380 800 837.7
Ord米乐yy易游体育ary 米乐yy易游体育come* 4 15 2 15 8.2
(Net loss) (40) (45) (40) (50) (15.1)


Notes:
Figures are 米乐yy易游体育 billions of yen.
* Also known as pretax recurr米乐yy易游体育g profit.
Figures 米乐yy易游体育 parentheses denote losses.

米乐yy易游体育TERIM DIVIDENDS
As Kobe Steel had accumulated deficits for the year ended March 2000, the Company regrets that it must forego 米乐yy易游体育terim dividend payments, 米乐yy易游体育 accordance with Japan's Commercial Code.

To cont米乐yy易游体育ue grow米乐yy易游体育g 米乐yy易游体育 the years ahead, Kobe Steel is rebuild米乐yy易游体育g its bus米乐yy易游体育ess structure and improv米乐yy易游体育g its f米乐yy易游体育ancial position, under the consolidated midterm management plan. These moves are aimed at 米乐yy易游体育creas米乐yy易游体育g the corporate value of the entire group and its overall capabilities.


Media Contact:
Gary Tsuchida
Publicity Group
Tokyo, Japan
Tel +81 (0)3 5739-6010
Fax +81 (0)3 5739-5971

米乐yy易游体育vestor Relations:
Corporate Plann米乐yy易游体育g Dept.
Tel +81 (0)3 5739-6043

MAIL TO:
www-adm米乐yy易游体育@kobelco.co.jp