Japan's top two steelmakers Thursday revised up their profit outlook for the fiscal year to March as high-grade steel demand from auto makers and shipbuilders remains strong and keeps prices high.

The steel makers upward profit revisions reflect Japanese manufacturers' robust consumption of high-grade steel sheets and plates, and some success in negotiating higher prices with key customers.

Nippon Steel Corp., Japan's top steel maker by output, said it now expects a record Y345 billion in group net profit for the year, up from the previously estimated Y310 billion.

Nippon Steel also lifted its group pretax profit forecast to Y580 billion from Y525 billion. The newly forecast pretax profit will also be an all-time high.

JFE Holdings Inc., the No. 2 steelmaker, now expects Y295 billion in group net profit for the year, up from the 290 billion projected previously.

It lifted its group pretax profit outlook to Y500 billion from Y490 billion.

Profits from products sold to auto makers, shipbuilders and other manufacturers are cushioning the blow from rising prices for iron ore and coal, as well as the downward pressure on global steel prices brought on by Chinese steel makers' aggressive production increases.

"We expected (demand from) domestic manufacturers to grow, but we didn't think it would grow as strongly as it did," Nippon Steel Vice President Nobuyoshi Fujiwara said at a news conference.

Fujiwara said the latest forecast doesn't reflect the expected outcome of the company's price negotiations with automakers, leaving room for still stronger profit growth.

JFE Holdings Vice President Toshikuni Yamazaki said at a separate news conference he expects the market climate for high-grade steel products to remain favorable in the next fiscal year starting April and that JFE's profit will keep growing.

"I believe that profit (in the next fiscal year) will not come below the level we project for this fiscal year," Yamazaki said.

JFE also announced its board has decided to adopt takeover defenses and will seek shareholders' approval of the measures at a meeting in June.

Under the plan, it will issue share warrants to defend against a takeover if a hostile acquirer tries to buy 20% or more of the company's shares.

Kobe Steel Ltd. maintained its profit outlook for the fiscal year to March in its earnings guidance, forecasting a group net profit of Y100 billion.

The three steelmakers, which have all started paying interim dividends from this fiscal year, also announced their dividend payout plan for the fiscal second half. Their total payment for this fiscal year will be higher than they paid last year.

Nippon Steel will pay a dividend per share of Y6 for the fiscal second half, raising the total payment for this fiscal year to Y10 from the previous year's Y9.

JFE will pay a second-half dividend of Y70 per share, raising the total payment for this fiscal year to Y120 from the previous year's Y100.