Amid Quality-Data Scandal, Kobe Steel Pulls Profit Forecast
10/31/2017 - Kobe Steel has withdrawn its fiscal-year profit forecast and agreed to forego paying a dividend, saying that its data-quality scandal is making it too difficult to estimate its income.
"It is difficult at this time to estimate the impact of the improper conduct concerning products of Kobe Steel and its group companies on business performance," the company said in a statement.
The company admitted earlier this month that employees had falsified quality-data on steel, aluminum and copper products shipped to a variety of customers. The scandal has shaken the company and forced customers into a hurry to check whether the safety of and performance of their products has been compromised.
Meanwhile, the company is reportedly seeking millions in loans to help it through the crisis, according to the Reuters news service. According to Reuters, the company is looking to borrow 50 billion yen, or about US$440 million.