Japan’s scandal-hit Kobe Steel yanks profit forecast

AFP, TOKYO: Japan’s crisis-hit Kobe Steel yesterday yanked its net profit forecast for the current fiscal year, saying it could not yet determine how much a snowballing fake data scandal would damage its business.

The company also cancelled a planned dividend as it withdrew its projection for a 35 billion yen ($308 million) net profit in the year to March 2018.

It had announced the forecast before the data crisis erupted several weeks ago.

The firm has admitted falsifying strength and quality data for a string of products shipped to hundreds of clients, from automakers to plane manufacturers.

The crisis at a venerable company that once employed Japan’s Prime Minister Shinzo Abe has already hit wide sections of Japanese industry, including Toyota, Nissan and Honda, which used the affected materials in their vehicles

Japans scandal-hit Kobe Steel yanks profit forecast

AFP, TOKYO: Japans crisis-hit Kobe Steel yesterday yanked its net profit forecast for the current fiscal year, saying it could not yet determine how much a snowballing fake data scandal would damage its business. The company also cancelled a planned dividend as it withdrew its projection for a 35 billion yen ($308 million) net profit in the year to March 2018. It had announced the forecast before the data crisis erupted several weeks ago. The firm has admitted falsifying strength and quality data for a string of products shipped to hundreds of clients, from automakers to plane manufacturers. The crisis at a venerable company that once employed Japans Prime Minister Shinzo Abe has already hit wide sections of Japanese industry, including Toyota, Nissan and Honda, which used the affected materials in their vehicles