Mitsubishi Steel Mfg : Financial Results for the Fiscal Year Ended March 2023 and Mid-term Business Plan
May 17, 2023
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Financial Results for the Fiscal Year Ended March 2023 and Mid-term Business Plan
May 18, 2023
Financial Results for the Fiscal Year Ended March 2023
May 18, 2023
I. FY2022 Results
II. Full-year Forecasts for FY2023
2
Full-Year performance results
I. FY2022 Results
Net sales grew YoY. Contributing factors included progress in passing on higher raw material costs to selling prices and the foreign exchange consequences of the weak yen.
Operating income was down YoY, due mainly to the following factors:
・Special Steel Bars business: Lower sales volumes in Japan
・Springs business: Higher procurement costs due to the weak yen
Ordinary income and net income were down YoY due to decrease in operating income and various other factors, including foreign exchange revaluation losses and lower gains on sales of assets than recorded in the previous period.
Both sales and profits fell short of previous forecasts (revised upward February 3) for various reasons, including lower than expected demand for construction machinery and automotive applications. (See p. 10 for more information.)
(JPY100M)
FY2021
FY2022
Previous
Difference between
results
Results
YoY change
forecast*
previous forecast
and results
Net sales
1,463
1,750
1,705
△45
242
Operating income
63
65
55
△10
△8
Ordinary income
58
45
37
△8
△21
Net income attributable
41
27
22
△5
△19
to owners of parent
company
3
* Figures announced February 3, 2023
Factors contributing to changes in net sales and operating income (YoY comparison)
I. FY2022 Results
Net sales
(JPY100M)
Foreign
Consolidation
Increased
adjustments, etc.
Decreased
Selling prices
exchange
sales under
sales
gains/losses
contract*1
volumes
FY2021 results
FY2022 results
Operating income
*1: Sales under contract to Nippon Steel Corporation
(JPY100M)
Energy and
Includes:
・Inventory valuation: +15
freight costs
・Higher Springs business procurement costs
Decreased
due to weak yen: △7
sales
Raw material
R&D costs,
volumes
prices
depreciation
(market
Raw
conditions)
Selling
material
Production
prices
Costs of
prices
Inventory
(carryovers,
costs
shipping raw
valuation,
etc.)*2
materials to
FY2021
Not recovered in
North
etc.
FY2022
results
previous period
America*3
results
*2: Difference between the cost of raw material inventories at the end of the previous year and current price of raw materials. While during FY2021 use of raw material inventories stockpiled before the sharp price increases had positive effects of JPY2.1B, there were no such effects in FY2022, and the difference had a negative effect on profits as a result.
*3: Temporary freight costs incurred due to emergency responses to the bankruptcy of a materials supplier's source of funding in FY2021
4
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Mitsubishi Steel Mfg. Co. Ltd. published this content on 18 May 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 02 June 2023 15:52:02 UTC.
Mitsubishi Steel Mfg. Co Ltd is a Japan-based company principally engaged in the manufacture and sale of speciality steel products, springs, fabricated materials and equipment. The Company operates through four segments. The Specialty Steel Products segment manufactures and sells speciality steel products such as carbon steel, low alloy steel, spring steel, and bearing steel. The Spring segment manufactures and sells coil springs, stabilizers, leaf springs, and coiled wave springs. The Fabricated Materials segment is engaged in the manufacture and sale of special alloy powders, fine powders, precision castings, and cast steel products. The Equipment and Device segment manufactures and sells forging machines, industrial machinery, steel structures, and environmental recycling equipment. The Company is also engaged in marine transportation, truck transportation, and warehousing businesses.