Neil DennisTOKYO (Reuters) - Embattled Kobe Steel Ltd has decided to withdraw its forecast for the current financial year as it struggles to quantify the impact of its data falsification scandal, the Nikkei business daily reported on Monday.
The steelmaker’s forecast for its first full-year profit in three years has been thrown into doubt by revelations of widespread tampering of data on products used across the world in cars, trains, airplanes and other equipment.
Dropping forecasts
Kobe Steel forecast in July that it would earn net profit of Y35bn yen ($308m) in the year through March 2018 after two years of losses.
The company is also trimming its recurring profit forecast for the full year to Y50bn, from Y55bn, the Nikkei reported.
In a later article the Nikkei said Japan’s biggest banks are considering a loan of Y50bn for Kobe Steel, to shore up its finances.
Coronavirus affects markets
First-half results
The company's first half net profit came in ahead of its targets at Y39.35bn.
Management said, however, that it would not be paying a Y10 per share dividend as originally planned in July.
Market reaction
Kobe Steel’s market value has slumped by about $1.5bn since it said in early October it had found widespread data tampering in its aluminium and copper business. The cheating has since been found across its businesses.
On Monday the shares gained 2.2% to Y920.5.
