Nippon Steel & Sumitomo Metal Corp. lifted its fiscal 2016 net profit forecast to ¥80.0 billion, or ¥90.00 per share, compared to ¥60.0 billion, or ¥68 per share, expected previously. Company affiliates are expected to post higher earnings, leading to the upgraded guidance.

Net revenue for the 12 months ending March 31 is expected to drop 7.3% year over year to ¥4.550 trillion, the company said Feb. 2.

CapEx in the full year is forecast at about ¥370 billion, up from ¥304.6 billion in the company's fiscal 2015.

The company's net profit attributable to shareholders in the third quarter of its fiscal 2016 dropped 61.2% year over year to ¥59.41 billion, or ¥67.08 per share.

Net sales for the period slipped 10.3% to ¥3.332 trillion, mainly due to a drop in net sales for the steelmaking and steel fabrication segment due to lower prices.

Crude steel production in the quarter rose to 11.52 million tonnes from 11.14 million tonnes a year ago, while shipments rose to 10.29 million tonnes from 9.99 million tonnes over the period.

Operating profit fell 57.9% to ¥62.16 billion, on a yearly basis.

Nippon Steel plans to declare a dividend of ¥25.00 per share for the full fiscal year.

Net sales for the steel segment declined to ¥2.926 trillion, from ¥3.264 trillion in the same year-ago period.

As of Feb. 1, US$1 was equivalent to ¥113.46.