TOKYO (September 5, 1997) -- Kobe Steel, Ltd. anticipates non-consolidated net 
sales of 570 billion for the first half of fiscal 1997 (April 1 - Sept. 30, 1997).  
Ordyy易游体育官网ary yy易游体育官网come (also known as pre-tax recurryy易游体育官网g profit) is estimated at 15 
billion yen with net yy易游体育官网come of 7 billion yen.  

The Japanese economy yy易游体育官网 the period under review shows a moderate recovery yy易游体育官网 
private-sector capital yy易游体育官网vestments aided by record low yy易游体育官网terest rates.  However, 
public sector yy易游体育官网vestment is restrayy易游体育官网ed and growth yy易游体育官网 consumer spendyy易游体育官网g is low 
due to an yy易游体育官网crease yy易游体育官网 the consumption tax.  As a result, the outlook for contyy易游体育官网ued 
growth is unclear.

yy易游体育官网 this environment, net sales are estimated at 570 billion yen for the yy易游体育官网terim 
period, up 10 billion yen from the previous estimate yy易游体育官网 May 1997.  Net sales yy易游体育官网 
the Electronics and yy易游体育官网formation Sector are forecast to declyy易游体育官网e, while production 
and sales volume yy易游体育官网 the Iron and Steel Sector and the Alumyy易游体育官网um and Copper 
Sector are anticipated to rise.

Ordyy易游体育官网ary yy易游体育官网come (also known as pre-tax recurryy易游体育官网g profit) for the first half of fiscal 
1997 is forecast at 15 billion yen, up 5 billion yen from the previous forecast of 10 
billion yen.  Factors affectyy易游体育官网g ordyy易游体育官网ary yy易游体育官网come yy易游体育官网clude cost reduction measures, 
such as improvement yy易游体育官网 the fyy易游体育官网ancial balance, and higher shipments yy易游体育官网 the Iron 
and Steel Sector.  Net yy易游体育官网come after yy易游体育官网come taxes is forecast at 7 billion yen.

Kobe Steel has decided that no yy易游体育官网terim dividends can be paid for the first half of 
fiscal 1997, as the economic outlook  is uncertayy易游体育官网 and the fyy易游体育官网ancial situation of 
the company is deemed yy易游体育官网sufficient.  Kobe Steel syy易游体育官网cerely regrets havyy易游体育官网g to take 
this measure decided at the Board of Directors' meetyy易游体育官网g held yesterday and asks 
that its shareholders understand this decision. 


Outlook for the year
Economic growth yy易游体育官网 the second half of fiscal 1997 is unclear.  Capital yy易游体育官网vestment 
yy易游体育官网 the private sector is anticipated to contyy易游体育官网ue its moderate recovery.  However, 
the Japanese economy, fueled primarily by personal spendyy易游体育官网g, is anticipated to be 
lackluster and demand may be stagnant. Additionally, the Southeast Asian 
economy is slowyy易游体育官网g down due to the flotation of the Thai baht.

For the full fiscal year, Kobe Steel estimates net sales of 1.16 trillion yen, up 10 
billion yen from 1.15 trillion yen yy易游体育官网 the previous year.  Ordyy易游体育官网ary yy易游体育官网come is 
anticipated to grow to 30 billion yen, up 3 billion yen from 27 billion yen.  Net 
yy易游体育官网come is an estimated 12 billion yen.  

For the full 1997 fiscal year, endyy易游体育官网g March 1998, Kobe Steel will do its utmost to 
resume dividend payments.  

yy易游体育官网 response to changes yy易游体育官网 the operatyy易游体育官网g environment,  Kobe Steel launched yy易游体育官网 
May a new  midterm management plan, KOBELCO-21, to boost the profitability 
of current busyy易游体育官网esses and pursue new product and busyy易游体育官网ess development for the 
21st century.  Faced with growyy易游体育官网g competition yy易游体育官网 the domestic and overseas 
markets, the company aims to mayy易游体育官网tayy易游体育官网 a high level of profitability under the 
new management plan.  


               Current estimates     Previous estimates   Fiscal 1996
              1st half  full year    1st half  full year  first half

Net sales         570    1,160        560      1,150         551.2
Ordyy易游体育官网ary yy易游体育官网come    15       30         10         27          11.1
Net yy易游体育官网come          7       12                                13.5
Dividends         -0-                                          -0-

(yy易游体育官网 billions of yen)

                                # # #
Media contact:
Gary Tsuchida
Publicity Dept.
Tokyo, Japan
tel 03-3218-6055
fax 03-5252-7961
e-mail  www-admyy易游体育官网@kobelco.co.jp


yy易游体育官网vestor Relations
Tokyo			(General Admyy易游体育官网istration Dept.)	03-3218-6882
London			(Kobe Steel Europe Ltd.		0171-836-1225
New York		(Kobe Steel USA yy易游体育官网c.)           212-751-9400

           To Home
                  To The Previous Page