NIPPON STEEL CORP ( (NISTF) ) has released its Q4 earnings. Here is a breakdown of the information NIPPON STEEL CORP presented to its investors.
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Nippon Steel Corporation is a leading Japanese company specializing in steel production and fabrication, operating across multiple sectors including engineering, chemicals, and system solutions. The company is known for its commitment to innovation and sustainability, particularly in carbon neutrality and digital transformation.
In its latest earnings report for fiscal year 2024, Nippon Steel Corporation reported a slight decline in revenue to ¥8,695.5 billion, a decrease of 1.9% from the previous year. The company faced a challenging global economic environment, with significant pressure from inflation and a critical steel supply-demand situation. Despite these challenges, Nippon Steel maintained a robust earnings structure due to strategic measures implemented in previous years.
Key financial metrics revealed a decrease in business profit by 21.4% to ¥683.2 billion and a drop in profit attributable to owners of the parent by 36.2% to ¥350.2 billion. The company continued to focus on restructuring its domestic and international operations, including expanding its presence in India and the U.S. market. Nippon Steel also made significant strides in its carbon neutrality goals, achieving a 43% reduction in CO₂ emissions in a pilot test.
Nippon Steel’s financial position remained strong, with total assets increasing to ¥10,942.4 billion and a notable rise in cash and cash equivalents. The company also reported a healthy cash flow from operating activities, amounting to ¥978.5 billion. Looking forward, Nippon Steel anticipates continued challenges in the global steel market but remains committed to its strategic goals, including further profit improvement measures and a focus on sustainability.
The company projects a cautious outlook for fiscal year 2025, with expectations of maintaining underlying business profit despite ongoing economic uncertainties. Nippon Steel plans to continue its dividend policy, aiming for a payout ratio of around 30%, reflecting its commitment to shareholder returns while navigating the complex global market landscape.