JFE Holdings (5411) Q1 2025 earnings summary

Executive summary

• 1Q FY2024 business profit was ¥56.9bn, down 32.9% year-over-year, mainly due to lower auto sales and reduced overseas profits.

• Full-year business profit forecast revised to ¥260.0bn, down ¥40.0bn from previous, with profit attributable to owners at ¥205.0bn.

• Interim dividend set at 50 yen per share; annual dividend forecast at 110 yen, up 10 yen year-over-year.

• Comprehensive income for 1Q FY2024 was ¥74.6bn, down 18.8% year-over-year.

• Segment profit declined sharply in steel, while engineering and trading showed mixed results.

Financial highlights

• 1Q FY2024 revenue: ¥1,211.1bn (down ¥50.9bn year-over-year); business profit: ¥56.9bn (down ¥27.9bn); profit attributable to owners: ¥27.5bn (down ¥32.1bn).

• Gross profit for 1Q FY2024 was ¥138.5bn, down from ¥152.0bn in 1Q FY2023.

• Basic EPS for 1Q FY2024 was ¥43.27, compared to ¥102.60 in 1Q FY2023.

• Exceptional loss of ¥12.2bn related to GECOSS share transfer and loss of control over a subsidiary.

• Segment profit for 1Q: Steel ¥31.5bn (down ¥36.6bn), Engineering ¥4.0bn (up ¥4.1bn), Trading ¥11.5bn (down ¥3.2bn).

Outlook and guidance

• FY2024 full-year business profit forecast: ¥260.0bn (down ¥38.2bn year-over-year, down ¥40.0bn from previous forecast).

• Profit attributable to owners forecast: ¥205.0bn (up ¥7.6bn year-over-year, down ¥15.0bn from previous forecast).

• 1H FY2024 business profit forecast at ¥85.0bn (down 48.3% year-over-year).

• Segment profit in steel business expected to recover in 2H FY2024 due to cost improvements and higher sales mix.

• Steel business segment profit forecast: ¥165.0bn (down ¥37.7bn year-over-year); Engineering ¥20.0bn; Trading ¥50.0bn.