Kobe Steel, Ltd. (KBSTY.PK) experienced a notable rise in its stock price, climbing approximately 9% in Japan, following the company's upward revision of its fiscal 2024 earnings forecast, despite a decline in profit over the first nine months compared to the previous year. Additionally, the company adjusted its annual sales outlook downward.
Kobe Steel has announced a revised forecast for the fiscal 2024 year-end dividend, increasing it to 55 yen per share from the previously stated 45 yen. Consequently, the total dividend for the year is projected to be 100 yen per share, compared to the prior forecast of 90 yen.
Over the nine-month period, the profit attributable to the parent company's shareholders decreased by 6.3% to 102.81 billion yen, down from last year's 109.73 billion yen. This resulted in basic earnings per share of 260.58 yen, a reduction from the previous year's 277.83 yen.
The company's ordinary profit saw a slight decline of 0.8%, falling to 132.87 billion yen from 133.93 billion yen last year. Operating profit dropped by 10%, reaching 124.53 billion yen compared to 138.24 billion yen during the same period last year. However, sales increased marginally by 0.6% to 1.88 trillion yen from 1.87 trillion yen in the previous year.
For fiscal 2024, Kobe Steel now anticipates a attributable profit of 130 billion yen, or 329.52 yen per share, marking an 18.7% increase from the prior year. Despite a projected decline in operating profit by 13% to 140 billion yen, net sales are expected to rise by 1.4% to 2.58 trillion yen year-over-year. Previously, the company had estimated an attributable profit of 120 billion yen, or 304.03 yen per share, reflecting a 9.5% growth year-over-year, and anticipated net sales of 2.60 trillion yen, a 2.2% increase.
As of trading in Japan, Kobe Steel's shares rose to 1,772.50 yen, marking an increase of 6.9%.
