Net profits from overseas operations are likely to be virtually non-existent in 2015 for Nippon Steel & Sumitomo Metal following Brazilian subsidiary Usiminas’ US$555 million net loss for the January-September period.

A report by Nikkei’s Asian Review claims that the Japanese steelmaker will be exposed to 15% of Usiminas’ expected year-end loss, which could leave NSSMC with a 10 billion yen loss (US$81 million).

An automotive sheet manufacturer in Alabama, USA, purchased by NSSMC and ArcelorMittal in 2014, is also said to be struggling.