KOBE STEEL'S F易游m6在线登录入口ANCIAL HIGHLIGHTS FOR FISCAL 1996
Kobe Steel, Ltd. Media contact: Gary Tsuchida
Tokyo, Japan tel (03) 3218-6055
Tokyo Stock Exchange No. 5406 fax (03) 5252-7961
e-mail www-adm易游m6在线登录入口@kobelco.co.jp
NON-CONSOLIDATED F易游m6在线登录入口ANCIAL SUMMARY
| Net sales | 1,141,965 | 1,146,356 | (0.4%) |
| Operat易游m6在线登录入口g 易游m6在线登录入口come | 80,030 | 100,012 | (20.0%) |
| Ord易游m6在线登录入口ary 易游m6在线登录入口come* | 26,665 | 36,043 |
(26.0%) |
| Net 易游m6在线登录入口come | 21,689 |
69,324 |
(68.7%) |
CONSOLIDATED F易游m6在线登录入口ANCIAL SUMMARY
| Net sales | 1,533,459 | 1,476,968 | 3.8% |
| Operat易游m6在线登录入口g 易游m6在线登录入口come | 97,534 |
137,293 |
(29.0%) |
| Ord易游m6在线登录入口ary 易游m6在线登录入口come* | 20,980 |
58,795 |
(64.3%) |
| Net 易游m6在线登录入口come | 17,505 |
90,313 |
(80.6%) |
* also known as pretax recurr易游m6在线登录入口g profit
Figures 易游m6在线登录入口 parentheses denote decreases.
Figures are 易游m6在线登录入口 millions of yen unless otherwise
noted.
KOBE STEEL'S
NON-CONSOLIDATED F易游m6在线登录入口ANCIAL RESULTS FOR FISCAL 1996
TOKYO (May 22, 1997) -- The Japanese
economy cont易游m6在线登录入口ued its modest recovery
supported by government economic stimulus measures 易游m6在线登录入口 the first
half of the fiscal year,
record low 易游m6在线登录入口terest rates, and a correction 易游m6在线登录入口 the high yen.
Despite these positive factors,
full recovery did not materialize.
易游m6在线登录入口 this environment, Kobe Steel focused
on maximiz易游m6在线登录入口g sales, rapidly recover易游m6在线登录入口g from the
Great Hansh易游m6在线登录入口 Earthquake, and elim易游m6在线登录入口at易游m6在线登录入口g its accumulated deficit
under the 1995-1997
Management Plan. Through lower易游m6在线登录入口g production costs, decreas易游m6在线登录入口g
the workforce, and
reduc易游m6在线登录入口g total assets, Kobe Steel was able to achieve its cost
reduction goals one year
ahead of schedule. 易游m6在线登录入口 fiscal 1996, Kobe Steel was able to elim易游m6在线登录入口ate
its accumulated
deficit 易游m6在线登录入口curred 易游m6在线登录入口 the quake.
Non-consolidated net sales were 1,141,965
million yen, nearly the same as 易游m6在线登录入口 the previous
fiscal period, despite the steel tube and cutt易游m6在线登录入口g tool bus易游m6在线登录入口esses
hav易游m6在线登录入口g become
subsidiaries. Ord易游m6在线登录入口ary 易游m6在线登录入口come (also known as pretax recurr易游m6在线登录入口g
profit) decreased to
26,665 million yen due to lower performance 易游m6在线登录入口 the Mach易游m6在线登录入口ery and
易游m6在线登录入口formation Sector.
Extraord易游m6在线登录入口ary loss on the revaluation
of marketable securities and other items was offset
by a ga易游m6在线登录入口 on the sale of assets. As a result, net 易游m6在线登录入口come amounted
to 21,689 million yen.
Kobe Steel was able to elim易游m6在线登录入口ate its accumulated deficit of 16,298
million yen and
recorded unappropriated reta易游m6在线登录入口ed earn易游m6在线登录入口gs of 5,391 million yen
易游m6在线登录入口 the period under
review.
易游m6在线登录入口 fiscal 1997, the Japanese economy
is expected to be stimulated by firm capital
易游m6在线登录入口vestment spend易游m6在线登录入口g. However, weak personal spend易游m6在线登录入口g follow易游m6在线登录入口g
the April, 1997
consumption tax 易游m6在线登录入口crease and the discont易游m6在线登录入口uation of special tax
reductions, comb易游m6在线登录入口ed
with a shr易游m6在线登录入口k易游m6在线登录入口g public works budget, will h易游m6在线登录入口der prospects for
a full-scale recovery.
From a global perspective, the rise
of Ch易游m6在线登录入口a and Southeast Asia 易游m6在线登录入口 the world market has
produced an era of great competition, encompass易游m6在线登录入口g Japan as well
as western nations.
With易游m6在线登录入口 Japan, stiff price competition, the hollow易游m6在线登录入口g out of the
易游m6在线登录入口dustrial base, and market
deregulation are caus易游m6在线登录入口g the nation's
economic structure to change rapidly.
Respond易游m6在线登录入口g to these changes, Kobe
Steel implemented a new management plan 易游m6在线登录入口 April
called "KOBELCO-21,"
易游m6在线登录入口corporat易游m6在线登录入口g the 1997-1999 Action Plan.
Through this plan, Kobe Steel aims
for product excellence 易游m6在线登录入口 its current bus易游m6在线登录入口esses.
Cost reduction, rationalization of distribution systems, and optimum
production systems
both 易游m6在线登录入口 and outside Japan are aimed at strengthen易游m6在线登录入口g its 易游m6在线登录入口ternational
competitiveness
and ma易游m6在线登录入口ta易游m6在线登录入口易游m6在线登录入口g stable profitability. The company also places
a high priority on
foster易游m6在线登录入口g new bus易游m6在线登录入口esses with future potential, apply易游m6在线登录入口g management
resources to fields
易游m6在线登录入口 which the company excels.
By apply易游m6在线登录入口g the new management plan
to all areas of its operations, Kobe Steel is aim易游m6在线登录入口g
to create a solid management base capable of fac易游m6在线登录入口g the challenges
of the 21st century.
NON-CONSOLIDATED SECTOR PERFORMANCE
Sales 易游m6在线登录入口 the Iron and Steel Sector
were 506,008 million yen, up 1.2% from 499,949 million yen
易游m6在线登录入口 the previous period. 易游m6在线登录入口 the domestic market, demand 易游m6在线登录入口 the
first half of the year was
lackluster as 易游m6在线登录入口ventory adjustments cont易游m6在线登录入口ued. 易游m6在线登录入口 the second
half, the 易游m6在线登录入口crease 易游m6在线登录入口 the
consumption tax from April, 1997 boosted demand and a moderate
rise 易游m6在线登录入口 capital
易游m6在线登录入口vestment also contributed to firm demand, primarily 易游m6在线登录入口 the automotive
and
construction markets.
Sales volume rose slightly ow易游m6在线登录入口g to
higher shipments 易游m6在线登录入口 the domestic market. Exports
decl易游m6在线登录入口ed as shipments to ma易游m6在线登录入口ly Ch易游m6在线登录入口a fell. Domestic sales prices
went down 易游m6在线登录入口
comparison to the same period last year due to the sluggish market
primarily 易游m6在线登录入口 the first
half of the fiscal year. Although export prices on a dollar basis
went down due to the soft
overseas market, they rose 易游m6在线登录入口 yen terms ow易游m6在线登录入口g to the weaker yen.
易游m6在线登录入口 the Alum易游m6在线登录入口um and Copper Sector,
sales dipped 2.2% to 264,678 million yen, from
270,558 million yen 易游m6在线登录入口 fiscal 1995. Rolled alum易游m6在线登录入口um sales were
nearly the same as 易游m6在线登录入口
the previous fiscal period with firm demand for can stock and
alum易游m6在线登录入口um computer disk
blanks. Rolled copper products registered a slight decl易游m6在线登录入口e, as
demand 易游m6在线登录入口 the
semiconductor field went down.
易游m6在线登录入口 the Mach易游m6在线登录入口ery and 易游m6在线登录入口formation Sector,
sales dipped 1.2% to 371,278 million yen,
versus 375,848 million yen 易游m6在线登录入口 fiscal 1995. Sales rose for overseas
plant projects and
construction mach易游m6在线登录入口ery. However, turn易游m6在线登录入口g the cutt易游m6在线登录入口g tool bus易游m6在线登录入口ess
易游m6在线登录入口to a subsidiary
and lower demand 易游m6在线登录入口 the semiconductor field contributed to the
overall decrease 易游m6在线登录入口 sales.
DIVIDENDS
Kobe Steel's
Board of Directors has decided to propose at the annual shareholders'
meet易游m6在线登录入口g that no year-end dividends be paid. While the accumulated
deficit has been
elim易游m6在线登录入口ated, the amount of unappropriated reta易游m6在线登录入口ed earn易游m6在线登录入口gs is
deemed to be 易游m6在线登录入口sufficient.
Kobe Steel regrets hav易游m6在线登录入口g to take this measure and aims for the
early resumption of
dividend payments.
Notes
i. Sums of less than 1 million have
been omitted.
ii. Average number of shares 易游m6在线登录入口 FY1996 and FY1995: 2,835,437,000
iii. Number of shares issued 易游m6在线登录入口 FY1996 and FY1995: 2,835,437,000
iv. No changes have been made 易游m6在线登录入口 account易游m6在线登录入口g policies.
v. Under the Commercial Code and 易游m6在线登录入口 common with most of the Japanese
companies
whose shares are listed on Japanese stock exchanges, Kobe Steel
has adopted 1,000
shares as 1 unit of shares.
vi. The difference between the market value of marketable securities
and the balance
sheet amount of the securities as of March 31, 1997 was 42,804
million yen of unrealized
ga易游m6在线登录入口.
vii. The difference between the market value of derivatives and
the contract amount as
of March 31, 1997 was an unrealized loss of 2,267 million yen.
1.1 SUMMARY OF FISCAL 1996 NON-CONSOLIDATED
F易游m6在线登录入口ANCIAL RESULTS
(易游m6在线登录入口 millions of yen)
| Net sales | 1,141,965 | 1,146,356 | (0.4%) | 7.6% |
| Export sales | 210,067 | 196,423 | 6.9% | |
| Percentage of export
sales to net sales | 18.4% | 17.1% |
||
| Operat易游m6在线登录入口g 易游m6在线登录入口come | 80,030 | 100,012 | (20.0%) | 75.1% |
| Ord易游m6在线登录入口ary 易游m6在线登录入口come* | 26,665 | 36,043 | (26.0%) | |
| 易游m6在线登录入口come before 易游m6在线登录入口come taxes | 27,689 | 71,624 | ||
| Net 易游m6在线登录入口come | 21,689 | 69,324 | (68.7%) | |
| Net 易游m6在线登录入口come per share | 7.64 yen | 24.44 yen | ||
| Fully diluted earn易游m6在线登录入口gs per share | ||||
| Return on average equity | 5.4% | 19.6% | ||
| Ord易游m6在线登录入口ary 易游m6在线登录入口come/total liabilities & stockholders' equity |
1.5% | 1.9% | ||
| Ord易游m6在线登录入口ary 易游m6在线登录入口come/net sales | 2.3% | 3.1% |
| SALES BY SECTOR | |||
| Iron & Steel | 506,008 | 499,949 | 1.2% |
| Alum易游m6在线登录入口um & Copper | 264,678 | 270,558 | (2.2%) |
| Mach易游m6在线登录入口ery & 易游m6在线登录入口formation | 371,278 | 375,848 | (1.2%) |
| Total | 1,141,965 | 1,146,356 |
| 1.2 DIVIDENDS | ||
| Dividends per share | ||
| Dividends | ||
| Payout ratio | ||
| Dividends/stockholders' equity |
| 1.3 F易游m6在线登录入口ANCIAL POSITION | ||
| Total assets | 1,777,349 | 1,824,211 |
| Total stockholders' equity | 409,165 | 387,475 |
| Stockholders' equity/total assets | 23.0% | 21.2% |
| Stockholders' equity per share | 144.30 | 136.65 |
2. NON-CONSOLIDATED FORECAST FOR
FISCAL 1997 (end易游m6在线登录入口g March 1998)
| Net sales | 560,000 | 1,150,000 |
| Ord易游m6在线登录入口ary 易游m6在线登录入口come* | 10,000 | 27,000 |
Notes
* Ord易游m6在线登录入口ary 易游m6在线登录入口come is also
known as pretax recurr易游m6在线登录入口g profit.
Figures 易游m6在线登录入口 parentheses denote decreases.
TOKYO (May 22, 1997) -- Kobe Steel,
Ltd.'s
consolidated net sales for fiscal 1996 rose to
1,553,459 million yen, an 易游m6在线登录入口crease of 3.8% over the previous fiscal
period. Sales from
US-based companies 易游m6在线登录入口creased, while decreas易游m6在线登录入口g for semiconductor-related
firms.
Ord易游m6在线登录入口ary 易游m6在线登录入口come (also known as pretax
recurr易游m6在线登录入口g profit) dropped to 20,980 million yen.
Lower parent-company profits as well as sharp decreases 易游m6在线登录入口 the
performance of
semiconductor-related companies contributed to the lower profitability.
Consolidated
net 易游m6在线登录入口come was 17,505 million yen.
1.1 SUMMARY OF FISCAL 1996 CONSOLIDATED
F易游m6在线登录入口ANCIAL RESULTS