1999/03/15 Kobe Steel revises consolidated results
estimates for fiscal 1998

TOKYO (March 15, 1999) -- Kobe Steel, Ltd. revises downward its
forecast for consolidated financial results estimates for fiscal
1998, ending March 31, 1999.

Consolidated net sales are forecast to decrease to 1.31 trillion
yen, down 40 billion yen from the February 12 estimate of 1.35
billion yen. All of the company's business sectors are expected
to show decreased sales. The Machinery Sector, especially
construction machinery, is expected to be adversely affected.
Sales from overseas companies converted into yen will show a
decrease due to the higher yen.

Consolidated ordinary loss (also called pretax recurring loss) is
anticipated to be 26 billion yen, versus the previously estimated
pretax loss of 21 billion yen, as the performance of group
companies in mainly the steel and semiconductor sectors is
expected to worsen. After-tax net loss is expected to be 37
billion yen, in comparison to the previous estimate of 34 billion
yen.

On February 12, Kobe Steel announced a non-consolidated after-tax
net loss estimate of 22 billion yen. For fiscal 1999, Kobe Steel
expects the severe business environment will continue. Under
these conditions, Kobe Steel decided at the board of directors'
meeting held today to propose at the general shareholders' meeting
to forgo dividend payments for fiscal 1998.

Kobe Steel is implementing bold changes in its business structure
to build a solid, profitable base and looks forward to the
continued support of its customers, shareholders and others.

Consolidated financial results estimates - fiscal 1998
Current est.(a) Previous est.(b)* Change (a-b)
Net sales
1,310
1,350
(40)
Ordinary income (loss)**
(26)
(21)
(5)
Net income (loss)
(37)
(34)
(3)

Parent financial results estimates - fiscal 1998
(announced February 12, 1999)
Net sales
960
Ordinary income (loss)**
(12)
Net income (loss)
(22)

Notes:
Figures are in billions of yen.
* Previous estimates refer to figures released on February 12, 1999.
** Also called pretax recurring profit (loss).
Figures in parentheses denote losses.
Figures have been adjusted for deferred taxation accounting.


Media contact
Gary Tsuchida
Tokyo, Japan
email www-admin@kobelco.co.jp
tel (03) 3218-6055
fax (03) 5252-7961

Investor relations
Tokyo (IR Group) (03) 3218-6310
London (Kobe Steel Europe Ltd.) (0171) 836-1225
New York (Kobe Steel USA Inc.) (212) 751-9400