Nippon Steel posts Q4 net loss, no forecast

Nippon Steel Corp, the world's No.4 steelmaker, reported a quarterly net loss, hit by earthquake-related losses, and did not give a forecast for the current financial year due to an uncertain outlook for demand.

Japan's major automakers -- key buyers of steel -- announced big production cuts after the March 11 earthquake and tsunami, which savaged the sector's parts-supply chains and triggered a nuclear crisis.

The production disruption will likely force steelmakers to delay price hikes to offset higher input costs, seek customers elsewhere in Asia or cut output later this year.

Many analysts expect Japan's major steel mills to tumble into the red on a pretax basis in the April-June quarter.

Nippon Steel, which vies with Asian rivals like POSCO, Baosteel and JFE Steel, booked a net loss of 11.2 billion yen (USD 136.2 million) for January-March, the fourth quarter of the 2010/11 financial year, compared with 33.4 billion yen from the preceding three months and 34.3 billion yen a year ago.

The average net profit forecast of five analysts, who gave estimates after the disaster, calls for Nippon Steel to post 92.43 billion yen in the year that began on April 1.

After the results, Nippon Steel shares were up 1.6%. The benchmark Nikkei average's was up 1.2%.

(USD 1 = 82.220 Japanese Yen)