Recognition of an Impairment Loss and Difference Between the Forecast and Actual Consolidated Results for the Fiscal Year Ending March 2026
ASAHI YUKIZAI CORPORATION
Some manufacturing equipment and common-use assets related to the pipe business within the Piping Systems segment
Declining profitability in the pipe business within the Piping Systems segment, against the backdrop of the shrinking domestic market for vinyl chloride pipes and other factors. In light of the change in asset grouping to SBU-based units, the Company reassessed the recoverability of its fixed assets.
¥1,975 million (extraordinary loss)
Fiscal year ending March 2026 (1 April 2025 to 31 March 2026)
Net income attributable to owners of the parent fell below the previous forecast due to the recognition of the impairment loss. The previous forecast was ¥4,800 million, compared with actual net income of ¥3,326 million, a difference of △¥1,474 million, or △30.7%.
| Item | Details |
|---|---|
| Event name | Recognition of an Impairment Loss and Difference Between the Forecast and Actual Consolidated Results for the Fiscal Year Ending March 2026 |
| Subject Entity | ASAHI YUKIZAI CORPORATION |
| Target Locations / Products | Some manufacturing equipment and common-use assets related to the pipe business within the Piping Systems segment |
| Cause | Declining profitability in the pipe business within the Piping Systems segment, against the backdrop of the shrinking domestic market for vinyl chloride pipes and other factors. In light of the change in asset grouping to SBU-based units, the Company reassessed the recoverability of its fixed assets. |
| Amount of Impact on Business Performance | ¥1,975 million (extraordinary loss) |
| Accounting period in which recognized | Fiscal year ending March 2026 (1 April 2025 to 31 March 2026) |
| Impact on Earnings Forecast | Net income attributable to owners of the parent fell below the previous forecast due to the recognition of the impairment loss. The previous forecast was ¥4,800 million, compared with actual net income of ¥3,326 million, a difference of △¥1,474 million, or △30.7%. |
Items this document does not state (18)
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.Based on its medium-term management plan, the Company changed its asset grouping from the previous method to SBU-based units and reassessed the recoverability of its fixed assets. As a result, it recognized an impairment loss in the pipe business within the Piping Systems segment, whose profitability has declined against the backdrop of the shrinking domestic market for vinyl chloride pipes and other factors. The Company cited increased sales of high-value-added products in the specialty molded products field of the Resins segment and steady progress on government construction projects in the Water Treatment and Resource Development segment as reasons for the higher operating income and ordinary income.