No category-specific facts could be extracted from this document.
The reasons the company gives
The company's own explanation, not something inferred from the numbers.For the fiscal year ended March 2026, the decline in operating profit was attributable to lower revenue resulting from reduced production volumes at customers in North America, a decrease in contribution margin associated with the revenue decline, product mix effects, and higher labor costs. These factors were more than offset by rationalization improvements, including lower direct material costs, foreign exchange gains, and a gain on the liquidation of a Chinese subsidiary. The forecast for the fiscal year ending March 2027 assumes changes in China's market structure, weak sales at major customers in North America, Thailand and Europe, a slowdown in the EV market, continued weakness in domestic new housing starts, and geopolitical tensions in the Middle East, along with higher raw material and energy prices.