JFE to post major loss in stock value

Major Japanese steelmaker JFE Holdings will be reporting extraordinary losses of around 1 billion dollars for the first half of this business year. The value of stocks owned by the company has plunged.

The company said on Monday that the losses stem from a sharp decline in the share value of JSW Steel of India. The Indian steelmaker is a capital partner of JFE Steel.

The Japanese firm made the announcement in line with an accounting rule. Losses must be reported when the value of stock holdings decline to less than half a company's acquisition value.

These extraordinary losses could force JFE Holdings to post a deficit in the business year ending next March. The group has been projecting a net profit of about 1 billion dollars.

Major steelmaker Sumitomo Metal Industries is also expected to report extraordinary losses of about 1 billion dollars because of share price declines worldwide.

Monday, October 03, 2011 17:09 +0900 (JST)