Nippon Steel, the second-largest steel company in the world, has cut its full-year profit forecast.
Steel producers have been hit by rising commodity prices
The company expects a pre-tax profit of 560bn yen ($5.4bn, £2.7bn) for the year ending 31 March - a 6.3% drop on the previous year.
Nippon Steel had been forecasting record profits, with a 0.4% rise.
Steel companies around the world have been struggling with soaring iron ore and coal prices. Japan's companies have also been hit by the rising yen.