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Revision of earnings forecasts4061Denka Company LimitedMaterials and Chemicals

Consolidated Financial Results for the First Quarter of the Fiscal Year Ending March 2027 [Japanese GAAP]

The consolidated earnings forecast for the second quarter (interim period) of the fiscal year ending March 2027 was revised. Net sales were lowered, while operating income and ordinary income were raised. The interim net income forecast remains zero, and the full-year earnings forecast and dividend forecast remain unchanged.

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Revised forecast

Fiscal year ending March 2027 · Second quarter (interim period)Previous forecast published 13 May 2026
Net Sales210,000→205,000million
-2.4%
Operating profit12,000→17,000million
+41.7%
Ordinary income7,000→11,000million
+57.1%
Profit attributable to owners of the parent0→0million
—
Net income per share0→0yen and sen
—

The bar length represents the relative magnitude of change, based on the item that changed the most in this document.

Reason for the revision

Demand for electronic and advanced products, among others, is expected to remain firm. For polymer solution products and others, a temporary positive impact on inventory receipts and payments is expected from sales price revisions made in response to higher raw material and fuel prices resulting from the situation in the Middle East. However, demand for Life Innovation products is expected to fall below assumptions. The interim net income forecast was left unchanged because special losses, including business restructuring losses of Denka Performance Elastomer LLC, the U.S. subsidiary, are expected.

Details and amount of extraordinary loss

The business restructuring loss for the first quarter was ¥4,844 million. The interim forecast includes a business restructuring loss at Denka Performance Elastomer LLC and other special losses, but the amount included in the forecast is Not disclosed.

Previous-period resultsResults for the second quarter of the previous fiscal year (interim period of the fiscal year ended March 2026): net sales of ¥196,699 million, operating income of ¥9,740 million, ordinary income of ¥6,791 million, interim net income attributable to owners of the parent of ¥3,902 million, and interim net income per share of ¥45.28
Dividend forecast revisionNo revision (total annual dividend forecast: ¥100.00)
Consolidated / non-consolidatedConsolidated
Revised forecast
ItemDetails
Net Sales¥210,000 million → ¥205,000 million(-2.4%)
Operating profit¥12,000 million → ¥17,000 million(+41.7%)
Ordinary income¥7,000 million → ¥11,000 million(+57.1%)
Profit attributable to owners of the parent¥0 million → ¥0 million
Net income per share0 yen and sen → 0 yen and sen
Fiscal Period CoveredFiscal year ending March 2027
Period CoveredSecond quarter (interim period)
Publication date of previous forecast13 May 2026
Previous-period resultsResults for the second quarter of the previous fiscal year (interim period of the fiscal year ended March 2026): net sales of ¥196,699 million, operating income of ¥9,740 million, ordinary income of ¥6,791 million, interim net income attributable to owners of the parent of ¥3,902 million, and interim net income per share of ¥45.28
Reason for the revisionDemand for electronic and advanced products, among others, is expected to remain firm. For polymer solution products and others, a temporary positive impact on inventory receipts and payments is expected from sales price revisions made in response to higher raw material and fuel prices resulting from the situation in the Middle East. However, demand for Life Innovation products is expected to fall below assumptions. The interim net income forecast was left unchanged because special losses, including business restructuring losses of Denka Performance Elastomer LLC, the U.S. subsidiary, are expected.
Details and amount of extraordinary lossThe business restructuring loss for the first quarter was ¥4,844 million. The interim forecast includes a business restructuring loss at Denka Performance Elastomer LLC and other special losses, but the amount included in the forecast is Not disclosed.
Dividend forecast revisionNo revision (total annual dividend forecast: ¥100.00)
Consolidated / non-consolidatedConsolidated

The reasons the company gives

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

Demand for electronic and advanced products is expected to remain firm, and a temporary positive impact on inventory receipts and payments is expected from sales price revisions made in response to higher raw material and fuel prices. However, demand for Life Innovation products is expected to fall below assumptions. The interim net income forecast was left unchanged because special losses, including business restructuring losses related to the U.S. subsidiary, which has been temporarily suspended indefinitely, are expected.

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Consolidated Financial Results for the First Quarter of the Fiscal Year Ending March 2027 [Japanese GAAP] | Denka Company Limited (4061) timely disclosure | Komori