JFE Holdings' operating income rose sharply for the first three quarters of fiscal 2017 due to a change in accounting methods, cost reductions and improved sales, while its steel business renewed old facilities to ensure stable steel output.
Consolidated operating income stood at ?172.32 billion ($1.56 billion) for April to December 2017, up 373.2% from ?36.4 billion for the same period a year ago, JFE Holdings - the parent company of Japan's second-largest steelmaker, JFE Steel - announced on Thursday, February 1.The surge contrasts with the 51.3% year on year drop in consolidated operating income during the nine months to December 2016.Part of the reason for the higher operating income was a new method of calculating the depreciation of JFE's property, plant and equipment, effective from the first quarter of fiscal 2017.Production at JFE's steelmaking facilities is expected to be stable for the year, which means the new straight-line method of accounting would be more appropriate for allocating the costs of assets, instead of the declining balance method used previously, the financial report...