Nippon Steel posts H1 loss, lifts forecast

TOKYO, Oct 29 - Nippon Steel Corp, the world's No.2 steelmaker, booked a first-half loss smaller than its forecast helped by government stimulus that boosted car sales and exports, and raised its full-year outlook.

Nippon Steel -- which trails ArcelorMittal and competes with Baoshan Iron and Steel Co and POSCO in Asia -- said its recurring loss, which is before tax and special items, came to 86.96 billion yen ($958 million) in the April-September first-half.

Nippon Steel had forecast a first-half loss of 110 billion yen.

It booked a profit of 262.2 billion yen a year ago.

The company raised its recurring income forecast for the year to March 2010 to a profit of 20 billion yen from a prior forecast for nil profit.

The new forecast is above a market consensus estimate for a profit of 13.45 billion yen in a poll of 17 analysts by Thomson Reuters I/B/E/S.

China's near-$600 billion stimulus spending has helped revive the region's steel industry. But production boosts by Chinese mills and their rising inventories have global steelmakers worried that China may ramp up its steel exports.