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Revision of earnings forecasts3577Tokai Senko K.K.Materials and Chemicals

Notice Regarding the Expected Recognition of Extraordinary Income from the Sale of Investment Securities and the Revision of Earnings Forecasts

The consolidated earnings forecasts for the interim and full-year periods of the fiscal year ending March 2027 have been revised downward, with net sales and each profit figure reduced. The Company also expects to record an approximately ¥360 million gain on the sale of investment securities from selling 2 policy-held shares, but this gain is not included in the earnings forecasts.

Worth reading
63In focus
0–100. This measures how worthwhile something is to read, not how good or bad the company is.
Direction
Deterioration
Direction inferred from the company’s description.
Scale
-500
Millions of yen (change in full-year net sales)
Wording
Avoiding a definitive answer
How definitive the wording is.

Revised forecast

Fiscal year ending March 2027 · Second quarter (interim period) and full yearPrevious forecast published 24 July 2026
Net SalesInterim period6,900→6,600million
-4.3%
Net SalesFull year14,500→14,000million
-3.4%
Operating profitInterim period70→-80million
-214.3%
Operating profitFull year450→150million
-66.7%
Ordinary incomeInterim period180→60million
-66.7%
Ordinary incomeFull year650→350million
-46.2%
Profit attributable to owners of the parentInterim period50→-20million
-140.0%
Profit attributable to owners of the parentFull year250→100million
-60.0%
Net income per shareInterim period15.84→-6.33yen
-140.0%
Net income per shareFull year79.2→31.68yen
-60.0%

The bar length represents the relative magnitude of change, based on the item that changed the most in this document. The percentage change shown by the dotted line is calculated from the two reported figures because the company did not provide the rate.

Reason for the revision

For the interim period, the reasons were reduced orders in the uniform sector of the domestic dyeing and processing business, and higher unit costs overseas due to persistently high chemical prices resulting from the situation in the Middle East and surging coal and gas prices. For the full year, the expected impact during the second half of higher prices and raw material costs caused by the depreciation of the Japanese yen and Indonesian rupiah.

Previous-period resultsInterim period Net Sales 6,633 / Operating profit 62 / Ordinary income 91 / Interim net income attributable to owners of the parent 27 / Interim net income per share 8.8 / Full year Net Sales 13,783 / Operating profit 163 / Ordinary income 310 / Profit attributable to owners of the parent 202 / Earnings per share 64.01
Consolidated / non-consolidatedConsolidated
Revised forecast
ItemDetails
Net SalesInterim period 6,900 / Full year 14,500 → Interim period 6,600 / Full year 14,000(Interim period △4.3% / Full year △3.4%)
Operating profitInterim period 70 / Full year 450 → Interim period -80 / Full year 150(Interim period Not disclosed / Full year △66.7%)
Ordinary incomeInterim period 180 / Full year 650 → Interim period 60 / Full year 350(Interim period △66.7% / Full year △46.2%)
Profit attributable to owners of the parentInterim period 50 / Full year 250 → Interim period -20 / Full year 100(Interim period Not disclosed / Full year △60.0%)
Net income per shareInterim period 15.84 / Full year 79.2 → Interim period -6.33 / Full year 31.68
Fiscal Period CoveredFiscal year ending March 2027
Period CoveredSecond quarter (interim period) and full year
Publication date of previous forecast24 July 2026
Previous-period resultsInterim period Net Sales 6,633 / Operating profit 62 / Ordinary income 91 / Interim net income attributable to owners of the parent 27 / Interim net income per share 8.8 / Full year Net Sales 13,783 / Operating profit 163 / Ordinary income 310 / Profit attributable to owners of the parent 202 / Earnings per share 64.01
Reason for the revisionFor the interim period, the reasons were reduced orders in the uniform sector of the domestic dyeing and processing business, and higher unit costs overseas due to persistently high chemical prices resulting from the situation in the Middle East and surging coal and gas prices. For the full year, the expected impact during the second half of higher prices and raw material costs caused by the depreciation of the Japanese yen and Indonesian rupiah.
Consolidated / non-consolidatedConsolidated
Items this document does not state (2)
Details and amount of extraordinary lossDividend forecast revision

These are items the company does not state in this document. We do not leave them blank, nor fill them in from other sources or by inference.

The reasons the company gives

The company's own explanation, not something inferred from the numbers.

For the interim period, the reasons were a decline in orders in the uniform sector of the domestic dyeing and processing business, and, overseas, persistently high prices for chemicals such as caustic soda due to the situation in the Middle East, along with higher unit costs resulting from surging coal and gas prices. For the full year, the reason is the expected continuation during the second half of higher prices and raw material costs caused by the depreciation of the Japanese yen and Indonesian rupiah.

How to read this page

This is not the documentKomori reads the disclosure the company filed and writes this summary. Figures are as stated by the company and are not audited.
Weight is not a verdictIt measures how much this changes what the company had already told the market. It is not a view on the shares.
Corrections happenIf the company reissues this disclosure, the page is rebuilt from the corrected version and the revision number moves up.
Notice Regarding the Expected Recognition of Extraordinary Income from the Sale of Investment Securities and the Revision of Earnings Forecasts | Tokai Senko K.K. (3577) timely disclosure | Komori