Kobe Steel Reports Strong Profitability Despite Cost Pressures

Tokyo, Feb 7, 2025 – Kobe Steel, Ltd. has reported resilient financial performance for the third quarter of fiscal 2024, with EBITDA per ton reaching ¥52,128 ($347.52) and Profit After Tax (PAT) per ton at ¥27,660 ($184.40).

Despite rising raw material costs and fixed expenses, the company maintained strong profitability by effectively passing on cost increases to customers. The company’s full-year net profit forecast stands at ¥130.0 billion, supported by an expected 6.5% return on invested capital (ROIC) and 12% return on equity (ROE).

Kobe Steel’s crude steel production is forecasted at 6.00 million tons, with sales volume reaching 4.70 million tons at an average selling price of ¥144,000 per ton. Key challenges remain in coking coal price volatility and declining automotive sector demand, but the company has improved its operational efficiency and order profitability to offset these pressures.

As the industry faces uncertain market conditions, Kobe Steel's ability to sustain margins highlights its strong competitive positioning. Analysts suggest that the company’s cost-cutting measures and strategic pricing adjustments will be crucial in maintaining its FY2025 EBITDA per ton outlook of ¥53,500–¥55,000 ($357–$367 per ton).