3. Nippon Steel & Sumitomo Metal Corporation (NSSMC)
Nippon Steel & Sumitomo Metal Corporation is a major Japanese steelmaker founded in 2012 with the merger of other Japanese steel makers Nippon Steel and Sumitomo Metal.
Image: company website
Before the merger Nippon Steel was a prominent domestic steel player in Japan which was formed in 1970 with a merger between Fuji Iron and Steel and Yawata Iron and Steel. The company’s overall businesses can be categorized into five business segments: steelmaking & steel fabrication, Engineering & Construction, Chemicals, New materials (nonferrous), and System solutions.
The Nippon Steel & Sumitomo Metal Corporation Group is comprised of the parent company Nippon Steel & Sumitomo Metal Corporation, 339 consolidated subsidiaries, and 103 other affiliates. The steel business in the world has seen its lowest prices and profits during the FY 2016 where the company has made steady progress in implementing the strategies of the Medium-Term Management Plan to Fiscal 2017, which was launched at the end of March 2015. The plan included enhancing and modernizing the efficiencies of the domestic mother mills, advancing global strategies, realizing world-leading cost competitiveness, augmenting technological superiority, and strengthening the subsidiaries and affiliates in the steel business.
NSSMC’s consolidated results for FY 2015 include ¥4,907 billion in net sales, ¥168 billion in operating income, and ¥201 billion in ordinary income. Decline in shipment volume and a decrease in steel material prices has substantially affected the results, which can also be attributed to lower profit by group companies and other factors. As a result, retained profit attributable to owners of parent company amounted to nearly ¥145 billion.
Consolidated total assets for the company at the end of fiscal 2015 reported was ¥6,425 billion, showing a decrease of ¥733 billion from ¥7,158 billion at the end of FY 2014. The main reasons were decreases in accounts and cash receivables of ¥92 billion, material inventories of ¥143 billion, investments in financial securities of ¥176 billion, shares of subsidiaries and affiliates of nearly ¥100 billion, and net defined assets of ¥65 billion.