Market Chatter: Nippon Steel Sees U.S. Steel Turning Profitable on Efficiency Gains

MT Newswires Live05-14 09:39

Nippon Steel (TYO:5401) said its U.S. unit United States Steel will return to profitability this fiscal year, supported by production improvements and higher steel prices, Nikkei reported Thursday.

The U.S. business is expected to generate about 100 billion yen in operating profit in the year ending March 2027, compared with a 5.6 billion yen loss a year earlier, according to the report.

Nippon Steel said consolidated net profit could rise to about 220 billion yen, driven by stronger performance in the U.S. and ongoing efficiency gains, the report said.

The company is investing about $11 billion in the U.S. unit through 2028, with early benefits already emerging from operational upgrades and cost reductions. Nippon Steel said about 40 billion yen of expected profit is linked to Nippon Steel-led improvements, with around 100 engineers deployed to support the turnaround, according to the report.

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