TOKYO: Nippon Steel Corp will cut its planned capital expenditures for the three-year period to March 2021 by between 10 per cent and 20 per cent as weaker steel demand amid the US-China trade war has eroded its profits, a company official said on Friday.
With a planned capital expenditure budget of 1.7 trillion yen ($16 billion) during the period, the company could cut between 170 billion to 340 billion yen ($1.6 billion to $3.2 billion) in spending.
Slowing global steel demand for automobiles and machinery because of the trade row and higher materials costs have battered Japanese steelmakers’ quarterly earnings, forcing them to cut their annual forecasts or give bleak guidance. Earlier this month, Nippon Steel, Japan’s top steelmaker, reported a 33 per cent drop in business profit for the April to June quarter and predicted a 56 per cent plunge in profit for the year through March 2020. — Reuters