British manufacturing output slumps

Updated 12 January 2013
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British manufacturing output slumps

LONDON: British manufacturing output fell in November and industrial production was weaker than expected, official data showed yesterday, sparking renewed speculation that the economy shrank at the end of 2012.
Manufacturing output contracted by 0.3 percent in November from activity in October and dived by 2.1 percent on a 12-month comparison, the Office for National Statistics (ONS) said in a statement.
That was worse than market expectations for a monthly increase of 0.5-percent and an annual drop of 2.1 percent, according to analysts polled by Dow Jones Newswires.
Manufacturing suffered a sharp downturn as construction industry output fell by 3.4 percent in November from activity in October — which was the biggest monthly decline for seven months — and tumbled 9.8 percent on an annual basis.
"November's disappointing UK industrial production and construction figures provided yet more evidence that the economy probably contracted in the fourth quarter of last year," said Vicky Redwood, chief UK economist at British research group Capital Economics.
The wider measure of industrial production — which includes also mining and quarrying, electricity, gas and water supply — rose by 0.3 percent in November from October, but fell 2.4 percent on an annual basis.
The ONS said that the modest increase in industrial output was caused by the return to production of the North Sea's Buzzard Oil field, which was closed throughout September and October for maintenance.
As a result, oil and gas extraction soared 11.3 percent in November compared with October. That was the biggest monthly gain since January 1968.
"Although overall production posted a 0.3-percent monthly rise, this just reflected a bounce-back in the energy sector," added Redwood.
The ONS will publish its initial estimate for British gross domestic product (GDP) in the fourth quarter, or October-December period, on Jan. 25.
Britain, which has suffered two recessions since the 2008 financial crisis, will suffer a triple-dip recession should GDP contract in both the fourth quarter of last year and first quarter of 2013.


Kobe Steel posts first profit in three years despite data fraud scandal

Updated 27 April 2018
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Kobe Steel posts first profit in three years despite data fraud scandal

TOKYO: Kobe Steel, Japan’s third-biggest steelmaker, on Friday posted its first annual profit in three years, even after admitting to falsifying quality data, a scandal that affected hundreds of customers and hit Japan’s manufacturing prowess.
Kobe Steel reported profit of ¥63.19 billion for the year ended March 31, against a loss of ¥23.05 billion a year earlier.
The result was above its own forecast of ¥45 billion and an estimate of ¥49.56 billion among seven analysts surveyed by Thomson Reuters.
The company predicted a ¥45 billion profit for the year to March 2019, compared with a mean profit forecast of ¥44.62 billion from six analysts.
Kobe Steel, which supplies steel and aluminum parts to manufacturers of cars, planes and trains around the world, admitted to supplying products with falsified specifications to more than 600 customers and admitted the data fraud has been going on for nearly five decades.