Kobe Steel revises downwards its full year profit forecast

In the wake of its widespread data falsification scandal the embattled Japanese steelmaker has taken several steps, including revising its full year revenue forecast.

On Monday, Japanese business daily Nikkei reported, embattled Japanese steel company Kobe Steel Ltd, as having announced its decision to withdraw its forecast for the current financial year as it struggles to quantify the impact of its data falsification scandal.

With revelations of widespread falsification of data on its products, for the first time in three years, the Japanese steelmaker full year forecast has been thrown into doubt.

The Nikkei also reported that Kobe Steel, Japan’s third largest steelmaker has also decided to cancel its interim dividend for the first time in two years.

Kobe Steel’s spokesman declined to comment on the Nikkei report.

In July, Kobe Steel had forecast a profit earning of $308 million (35 billion yen) for the financial year ending on March 2018.

The Nikkei also reported that Kobe Steel has trimmed its recurring profit forecast for the full year to 50 billion yen, from 55 billion yen.

In a separate but related article, the Nikkei reported that some of Japan’s biggest banks are considering a loan of 50 billion yen to Kobe Steel, in order to help it shore up its finances.

Incidentally, Kobe Steel’s market value has dropped by around $1.5 billion since early October when it’s widespread data falsification regarding its copper and aluminum business exploded on the scene.

The cheating scandal has since been found across its businesses.

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