RNS Number:3644I
Kobe Steel Ld
06 March 2003

NEWS RELEASE

                                                                Kobe Steel, Ltd.
                                                   Tokyo Stock Exchange No. 5406


Kobe Steel's earnings forecast for fiscal 2002

TOKYO (March 6, 2003) - Kobe Steel, Ltd. announced today its earnings
forecast for fiscal 2002, ending March 31, 2003.

Consolidated forecast

The Japanese economy continues to be weak in fiscal 2002.  Although there was a
slight recovery in the first half due to overseas demand, exports began to
weaken due to a decelerating U.S. economy.  Factors pulling down demand in Japan
are sluggish private-sector capital investment, dull personal spending, and
rising deflationary pressures.

Amid these conditions, Kobe Steel expects domestic steel demand in the second
half of fiscal 2002 to be higher than in the first half.  Although
private-sector capital investment and construction continued to be weak,
production activity was buoyed by inventory adjustments in the first half of the
fiscal year.  Car production, too, continued to be high.  Exports, mainly to
Asian countries, continued to be strong, though exports in the second half are
expected to be lower than the first half due to low seasonal demand.  Owing to
robust demand, Japan's overall production of crude steel is expected to top 109
million metric tons.

As other business segments are also generally expected to do well, Kobe Steel's
consolidated sales are anticipated to reach 1,190 billion yen, up 10 billion yen
from 1,180 billion yen in the previous estimate.  Ordinary income is expected to
be 30 billion yen, up 2 billion yen from 28 billion yen in the previous
estimate.

Net income is anticipated to decrease to 1 billion yen, a drop of 9 billion yen
from the previous forecast.  Due to the weak stock market, Kobe Steel
anticipates a considerable extraordinary loss mainly from the write down of
securities.


Consolidated                       Current Estimates           Previous Estimates            FY 2001
                                                                 (Nov. 21, 2003)
Net Sales                                1,190                        1,180                   1,198
Ordinary Income (loss)*                    30                          28                    (13.5)
Net Income (loss)                          1                           10                    (28.5)

Figures are in billions of yen.

*  Also known as pretax recurring profit (loss).

Figures in parentheses denote loss.


                                     -more-



Non-consolidated forecast

Non-consolidated net sales are anticipated to reach 810 billion yen, up 10
billion yen from the previous forecast of 800 billion yen.  Ordinary income is
also expected to increase to 17 billion yen, up 1 billion yen from the 16
billion yen previously forecasted.

However, Kobe Steel anticipates a non-consolidated net loss of 4 billion yen,
versus a net income of 4 billion yen forecast last November, due to a large
write down on securities.

Non-consolidated                   Current Estimates           Previous Estimates            FY 2001
                                                                 (Nov. 21, 2003)
Net Sales                                 810                          800                    793.9
Ordinary Income (loss)*                    17                          16                      (4)
Net Income (loss)                         (4)                           4                    (20.9)

Figures are in billions of yen.

* Also known as pretax recurring profit (loss).

Figures in parentheses denote loss.


Dividends

As the company is expected to incur undisposed deficits in the year ending March
2003, Kobe Steel regrets that it must forgo dividend payments in accordance with
Japan's Commercial Code.



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Media contact
Gary Tsuchida
Communication Center
9-12 Kita-Shinagawa 5-chome
Shinagawa-ku, Tokyo  141-8688
Japan

Tel +81-3-5739-6010
Fax +81-3-5739-5971
E-mail     www-admin@kobelco.co.jp
Web site:  www.kobelco.co.jp/index_e_wi.htm

Investor Relations
Tel +81-3-5739-6043
Fax +81-3-5739-5973


                      This information is provided by RNS
            The company news service from the London Stock Exchange
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