Nippon Steel raises profit forecast on US Steel strength

Nippon Steel has upwardly revised its full-year profit forecast to 290 billion yen. The company's steelmaking segment, which accounts for over 90% of its total revenue, is seeing a stark contrast between domestic and international performance.

While domestic operations are struggling due to rising raw material costs and unfavorable market conditions influenced by Middle East tensions, overseas operations—specifically US Steel—are driving growth. Following its acquisition, US Steel's business profit outlook was raised by 80 billion yen to over 180 billion yen, fueled by rising hot-rolled coil prices in the United States and improved technical synergies.

Despite the domestic challenges and a downward revision for domestic business profit, the overall positive momentum from US Steel has allowed the company to increase its total revenue and profit projections for the fiscal year.