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JFE Holdings' first-quarter profits down 74% and misses expectations

JFE Holdings posted a net profit of 7.1 billion yen (48 million dollars) on Monday, down 74% compared to a year ago and below analysts' expectations.

Analysts surveyed by LSEG had predicted that JFE Holdings would report a quarterly net profit of 16.1 billion yen. In the same period last year, the company made 27.5 billion yen.

It reported that its crude steel production during the period was 5,28 million metric tonnes, down from 5,48 million tons one year earlier. The company also suffered from lower export profits and foreign exchange fluctuations.

JFE Holdings has maintained its profit forecast of 75 billion yen for the fiscal year ending in March next year.

JFE announced in a separate press release on Monday that it would invest 120 billion yen with India's JSW Steel to increase production at two plants located in India.

The investment will boost output of cold-rolled grain-oriented electric steel, a product that is used in motors, transformers and generators.

The first plant is expected to reach full production by 2027. The other currently has a capacity of 50,000 tonnes per year.

JFE stated that the expansion will help meet the rising demand for power infrastructure in India as well as the growing use of renewable energy and the increase in data centres. Reporting by Katya Glubkova, Editing by Kim Coghill & Joe Bavier

(source: Reuters)