*

Revises FY forecast to 40 bln yen loss from 200 bln profit

*

Books 232 bln yen loss on sale of its stake in AM/NS

Calvert

*

US Steel to contribute 80 bln yen business profit in

FY2025

*

Plans share split effective October 1

(Adds quotes in paragraphs 4-7)

By Katya Golubkova and Yuka Obayashi

TOKYO, Aug 1 (Reuters) - Nippon Steel ( NISTF ) revised

on Friday its forecast for the full fiscal year to a 40 billion

yen ($266 million) loss from 200 billion yen profit previously,

mostly due to charges related to its acquisition of U.S. Steel

.

In June, Nippon Steel ( NISTF ), Japan's biggest steelmaker, closed

its $14.9 billion acquisition of U.S. Steel after an 18-month

struggle to obtain U.S. government approval for the deal, which

faced scrutiny due to national security concerns.

Nippon Steel ( NISTF ) said that the annual results will be hit by a

one-off loss tied to the U.S. Steel deal, in particular a loss

of 231.5 billion yen related to the transfer of its 50% stake in

joint venture AM/NS Calvert to partner ArcelorMittal,

and some other factors.

U.S. Steel will be consolidated for the nine months from

July to March 2026 and contribute 80 billion yen to Nippon

Steel's ( NISTF ) business profit in the current year, followed by 150

billion yen next year as its Big River 2 plant begins

operations, Vice Chair Takahiro Mori said.

"We aim for U.S. Steel's contribution to reach 250 billion

yen soon after fiscal 2028, driven by the expansion of high

value-added products, and further enhanced by synergies from $11

billion in capital investment," Mori said.

"By transferring our advanced technologies such as

non-directional electromagnetic steel sheets, U.S. Steel's

earnings will likely improve significantly," Mori said.

The company will formulate action plans for U.S. Steel this

month, which will be reflected in Nippon Steel's ( NISTF ) next mid-term

management plan to be mapped out later this year, he said.

On Friday, Nippon Steel ( NISTF ) posted a net loss of 195.8 billion

yen for the three months ended June 30, wider than analysts'

estimate of 25.7 billion yen loss, according to an LSEG poll. A

year earlier, it reported quarterly a net profit of 157.56

billion yen.

Nippon Steel ( NISTF ) also decided to conduct a stock split at a

ratio of five shares for every one share effective from October

1.

Last month, global rating agency S&P downgraded Nippon Steel ( NISTF )

to 'BBB' from 'BBB+' with a 'negative' outlook, citing an

increasing financial strain following the U.S. Steel deal.

($1 = 150.5400 yen)

(Reporting by Katya Golubkova and Yuka Obayashi; Editing by

Jacqueline Wong and Emelia Sithole-Matarise)