Komori
Occurring Fact4061Denka Company LimitedMaterials and Chemicals

Notice of Extraordinary Loss Recognition

In connection with the indefinite temporary suspension of the business of its U.S. subsidiary, the Company recognized labor costs and other expenses related to the removal of raw materials and other items as a business restructuring loss under extraordinary loss in the first quarter of the fiscal year ending March 2027. The loss was already reflected in the full-year earnings forecast, and its impact on profit before income taxes for the quarter is expected to be immaterial.

Worth reading
44Recurring
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Direction
Deterioration
Direction inferred from the company’s description.
Scale
4844
million yen
Wording
Definitive
How definitive the wording is.

An extraordinary loss (business restructuring loss) was recognized.

Subject Entity

Denka Performance Elastomer LLC (the Company's U.S. subsidiary)

Target Locations / Products

Denka Performance Elastomer LLC, the Company's U.S. subsidiary; raw materials and other items

This disclosure08/07/2026
Cause

Primarily labor costs and other expenses related to the removal of raw materials and other items at Denka Performance Elastomer LLC, the Company's U.S. subsidiary whose operations have been temporarily suspended for an indefinite period.

Amount of Impact on Business Performance

¥4,844 million (extraordinary loss, business restructuring loss)

Accounting period in which recognized

Cumulative consolidated period for the first quarter of the fiscal year ending March 2027 (1 April 2026 to 30 June 2026)

Impact on Earnings Forecast

Already reflected in the full-year consolidated earnings forecast for the fiscal year ending March 2027 announced on 13 May 2026. The impact on profit before income taxes for the quarter is expected to be immaterial.

Company response

Suspended operations

Business of Denka Performance Elastomer LLC (temporarily suspended for an indefinite period)

Event that occurred
ItemDetails
Event nameAn extraordinary loss (business restructuring loss) was recognized.
Subject EntityDenka Performance Elastomer LLC (the Company's U.S. subsidiary)
Target Locations / ProductsDenka Performance Elastomer LLC, the Company's U.S. subsidiary; raw materials and other items
CausePrimarily labor costs and other expenses related to the removal of raw materials and other items at Denka Performance Elastomer LLC, the Company's U.S. subsidiary whose operations have been temporarily suspended for an indefinite period.
Amount of Impact on Business Performance¥4,844 million (extraordinary loss, business restructuring loss)
Accounting period in which recognizedCumulative consolidated period for the first quarter of the fiscal year ending March 2027 (1 April 2026 to 30 June 2026)
Impact on Earnings ForecastAlready reflected in the full-year consolidated earnings forecast for the fiscal year ending March 2027 announced on 13 May 2026. The impact on profit before income taxes for the quarter is expected to be immaterial.
Suspended operationsBusiness of Denka Performance Elastomer LLC (temporarily suspended for an indefinite period)
Items this document does not state (17)
Date of occurrenceDate recognized / date notice receivedType of litigation or proceedingCourt or authorityPlaintiffDefendantDate of filing / date of actionClaim amount / surcharge amountAmount of receivables at risk of non-collection or delayed collectionScheduled resumption dateInvestigation structureMeasures to prevent recurrenceDirectors' and officers' liabilityVoting rights ownership percentage before the changeVoting rights ownership percentage after the changeOutlookPlanned follow-up disclosure

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.

Labor costs and other expenses related to the removal of raw materials and other items at Denka Performance Elastomer LLC, the U.S. subsidiary whose operations have been temporarily suspended for an indefinite period.

How to read this page

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Corrections happenIf the company reissues this disclosure, the page is rebuilt from the corrected version and the revision number moves up.
Notice of Extraordinary Loss Recognition | Denka Company Limited (4061) timely disclosure | Komori