Recognition of extraordinary gains and losses (consolidated and non-consolidated)
The filing company (Denka Company Limited), its U.S. subsidiary Denka Performance Elastomer LLC, and former equity-method affiliate 東洋スチレン株式会社
U.S. subsidiary Denka Performance Elastomer LLC; raw materials and intermediate products
Write-downs of raw materials and intermediate products held by Denka Performance Elastomer LLC, which has been provisionally suspended for an indefinite period, and labor costs associated with removing raw materials and other materials. In addition, the inclusion of 東洋スチレン株式会社 as a consolidated subsidiary
Consolidated: business restructuring loss of ¥21,112 million (extraordinary loss), gain on a bargain purchase of ¥6,517 million (extraordinary gain), and loss on step acquisition of ¥4,875 million (extraordinary loss). Non-consolidated: impairment loss on shares of affiliates of ¥24,079 million (extraordinary loss) and reversal of provision for business losses of affiliates of ¥8,677 million (extraordinary gain). The 2 items recorded in the non-consolidated financial statements are eliminated in the consolidated financial statements and have no impact on consolidated profit or loss.
Fiscal year ending March 2026
Already reflected in the full-year consolidated earnings forecast for the fiscal year ending March 2026 announced on 6 February 2026. The impact on profit before income taxes is immaterial.
Company response
Denka Performance Elastomer LLC has been provisionally suspended for an indefinite period
| Item | Details |
|---|---|
| Event name | Recognition of extraordinary gains and losses (consolidated and non-consolidated) |
| Subject Entity | The filing company (Denka Company Limited), its U.S. subsidiary Denka Performance Elastomer LLC, and former equity-method affiliate 東洋スチレン株式会社 |
| Target Locations / Products | U.S. subsidiary Denka Performance Elastomer LLC; raw materials and intermediate products |
| Cause | Write-downs of raw materials and intermediate products held by Denka Performance Elastomer LLC, which has been provisionally suspended for an indefinite period, and labor costs associated with removing raw materials and other materials. In addition, the inclusion of 東洋スチレン株式会社 as a consolidated subsidiary |
| Amount of Impact on Business Performance | Consolidated: business restructuring loss of ¥21,112 million (extraordinary loss), gain on a bargain purchase of ¥6,517 million (extraordinary gain), and loss on step acquisition of ¥4,875 million (extraordinary loss). Non-consolidated: impairment loss on shares of affiliates of ¥24,079 million (extraordinary loss) and reversal of provision for business losses of affiliates of ¥8,677 million (extraordinary gain). The 2 items recorded in the non-consolidated financial statements are eliminated in the consolidated financial statements and have no impact on consolidated profit or loss. |
| Accounting period in which recognized | Fiscal year ending March 2026 |
| Impact on Earnings Forecast | Already reflected in the full-year consolidated earnings forecast for the fiscal year ending March 2026 announced on 6 February 2026. The impact on profit before income taxes is immaterial. |
| Suspended operations | Denka Performance Elastomer LLC has been provisionally suspended for an indefinite period |
Items this document does not state (17)
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.The amounts primarily reflect write-downs of raw materials and intermediate products held by Denka Performance Elastomer LLC, which has been provisionally suspended for an indefinite period, as well as labor costs associated with removing raw materials and other materials. In addition, the Company recognized a gain on a bargain purchase and a loss on step acquisition resulting from the inclusion of 東洋スチレン株式会社 as a consolidated subsidiary.