© Reuters. FILE PHOTO: The logos of Nippon Steel Corp. are didplayed at the company headquarters in Tokyo, Japan March 18, 2019. REUTERS/Yuka Obayashi/File Photo

TOKYO (Reuters) - Nippon Steel, Japan's top steel producer, lifted its net profit forecast for the year through end-March to reflect stronger-than-expected results in the first half, helped by improved margins and higher gains from group companies.

The steelmaker now expects an annual net profit of 420 billion yen ($2.78 billion), up from its August prediction of 400 billion yen. The revised outlook compares with a mean estimate of 399 billion yen profit in a poll of 11 analysts by LSEG and a profit of 694 billion yen last year.

The company said in a statement its net profit declined 19.4% to 300 billion yen in the April-September period, but the figure beat its earlier forecast of 200 billion yen, supported by a smaller appraisal loss in its inventories.

($1 = 151.2900 yen)

Nippon Steel lifts annual outlook on improved first-half margins