Kobe Steel Profit Tumbles amid Data Scandal

August 2, 2018

Tokyo- Kobe Steel Ltd. said Wednesday its group net profit tumbled 49.4 pct in April-June from a year before, hit by a scandal over its falsification of quality data on aluminum and copper products.

The Japanese company booked 2.5 billion yen in costs related to the scandal, including compensation for customers.

There has been an outflow of customers, mainly those for aluminum products, Kobe Steel Senior Managing Executive Officer Yoshihiko Katsukawa told a press conference.

The company reported a net profit of 12,659 million yen for the fiscal first quarter, compared with a profit of 25,009 million yen a year before.

Sales rose 10.0 pct to 478,318 million yen, thanks to brisk demand for hydraulic excavators in China.

Operating profit dropped 54.4 pct to 13,831 million yen, partly reflecting lower crude steel production due to equipment trouble. Jiji Press