Tuesday, November 8, 2022

News Release

Company name:

Mitsubishi Steel Mfg. Co., Ltd.

Representative:

Jun Yamaguchi, Representative Director and President/Executive Officer

(Securities code: 5632, Prime Market, Tokyo Stock Exchange)

Address inquiries to: Koichi Yaginuma, Executive Officer/Manager, Accounting Department (Tel. +81-3-3536-3135)

Notice of differences between forecasts and actual results for the first half of the

consolidated fiscal year and revised full-year forecasts of consolidated financial results

Presented below are the differences between the forecasts of consolidated financial results for the cumulative period through the first half of the consolidated fiscal year ending March 2023 (from April 1, 2022 through September 30, 2022) announced May 13, 2022 and actual results announced today.

Please note that we have revised our full-year forecasts of consolidated financial results for the fiscal year ending March 2023, as reported below.

1. Differences between forecasts and actual results for the first half of the consolidated fiscal year and revision of full- year forecasts of consolidated financial results

  1. Differences between forecasts and actual results for the cumulative period through the first half of the consolidated fiscal year ending March 2023 (from April 1, 2022 through September 30, 2022)
  1. Revisions of full-year forecasts of consolidated financial results for the fiscal year ending March 2023 (from April 1, 2022 to March 31, 2023)

2. Reasons for these differences and revisions

  1. Differences between forecasts and actual results for the first half of the consolidated fiscal year Net sales were largely in line with initial forecasts.
    Operating income was higher than initially forecast due to use of raw material inventories from before price hikes in the Special Steel Bars Business and other factors and despite worsening losses in the Springs Business due to the effects of production disruptions at a North American subsidiary and other factors.
    Ordinary income and net income attributable to owners of parent exceeded initial forecasts due to an increase in operating income and foreign exchange gains due to yen devaluation on assets denominated in foreign currency.
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  1. Revisions of full-year forecasts of consolidated financial results
    Net sales are projected to exceed initial forecasts due to expected translation effects of the weaker yen in addition to efforts to reflect in selling prices price hikes in raw materials and energy as well as rising prices of imported raw materials due to progressive depreciation of the yen.
    Operating income is expected to exceed initial forecasts due to improved profits in the first half and other factors. Ordinary income is expected to exceed initial forecasts due to increased operating income and foreign exchange gains due to yen devaluation on assets denominated in foreign currency.
    Despite the increase in ordinary income, forecasts of net income attributable to owners of parent remain unchanged due to expectations of higher tax costs and revised projections for insurance claims to be recorded as extraordinary gains.
    (Revision of amount of extraordinary gains to be recorded from insurance claims)
    It was initially expected that losses due to the fire at Springs business manufacturing subsidiary MSSC Ahle GmbH last June would be covered by insurance claims. However, the risk has emerged that a portion of the currently unpaid insurance claims will go uncollected due to differences in opinion between us and the insurer regarding the method for estimating losses. While we plan to continue negotiations on this matter, since the future outcomes of such negotiations are unclear and it appears unlikely negotiations will be concluded during this period, we have revised the anticipated amount of extraordinary gains from insurance claims.
    (Anticipated amount of extraordinary gains from insurance claims for this period: revised to an expectation of 900 million yen from an initial expectation of 1.5 billion yen)
    Note: Forecasts of financial results are based on information available at this time. Actual results may differ from forecast figures for various reasons.

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Mitsubishi Steel Mfg. Co. Ltd. published this content on 08 November 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 25 November 2022 01:43:07 UTC.