Recognition of cost of sales (reduction in the book value of inventories), recognition of non-operating income (share of profit of investments accounted for using the equity method), and revision of earnings forecasts
Consolidated results of PACIFIC METALS CO.,LTD. (the filing company). The share of profit of investments accounted for using the equity method relates mainly to an equity-method affiliate in the Philippines
Primarily the nickel business, inventories (merchandise and finished goods, work in process, raw materials and supplies), ferronickel products, and equity-method affiliates in the Philippines
Inventories: decline in profitability. Share of profit of investments accounted for using the equity method: robust demand, mainly at an equity-method affiliate in the Philippines. Earnings forecasts: the impact of sluggish domestic demand in China, developments in the financial and capital markets, geopolitical risks, product prices, nickel ore, raw material and fuel, and electricity prices, and crude oil prices
¥1,308 million reduction in the book value of inventories (cost of sales, expected to be recognized during the cumulative second quarter of the consolidated fiscal year ending March 2027). ¥4,672 million share of profit of investments accounted for using the equity method (non-operating income, expected to be recognized during the same period)
Cumulative second quarter of the consolidated fiscal year ending March 2027 (1 April 2026 to 30 September 2026)
Revised the consolidated earnings forecast for the cumulative second quarter: net sales ¥5,449 million, operating loss ¥4,009 million, ordinary income ¥957 million, interim net income attributable to owners of the parent ¥645 million, and interim earnings per share ¥37.13. The full-year forecast was also revised to net sales of ¥11,188 million, operating loss of ¥6,035 million, ordinary income of ¥1,831 million, net income attributable to owners of the parent of ¥1,321 million, and earnings per share of ¥75.94
The Company will implement thorough cost control, including by establishing a more flexible procurement structure, and work to strengthen its earnings base. It will also continue to vigorously advance initiatives based on the basic policies and other elements of its medium- to long-term strategy, PAMCOvision2031
| Item | Details |
|---|---|
| Event name | Recognition of cost of sales (reduction in the book value of inventories), recognition of non-operating income (share of profit of investments accounted for using the equity method), and revision of earnings forecasts |
| Date of occurrence | 30 September 2026 (the end of the cumulative second quarter of the consolidated fiscal year; the decision and disclosure date for the revision of the earnings forecasts was 29 October 2026) |
| Subject Entity | Consolidated results of PACIFIC METALS CO.,LTD. (the filing company). The share of profit of investments accounted for using the equity method relates mainly to an equity-method affiliate in the Philippines |
| Target Locations / Products | Primarily the nickel business, inventories (merchandise and finished goods, work in process, raw materials and supplies), ferronickel products, and equity-method affiliates in the Philippines |
| Cause | Inventories: decline in profitability. Share of profit of investments accounted for using the equity method: robust demand, mainly at an equity-method affiliate in the Philippines. Earnings forecasts: the impact of sluggish domestic demand in China, developments in the financial and capital markets, geopolitical risks, product prices, nickel ore, raw material and fuel, and electricity prices, and crude oil prices |
| Amount of Impact on Business Performance | ¥1,308 million reduction in the book value of inventories (cost of sales, expected to be recognized during the cumulative second quarter of the consolidated fiscal year ending March 2027). ¥4,672 million share of profit of investments accounted for using the equity method (non-operating income, expected to be recognized during the same period) |
| Accounting period in which recognized | Cumulative second quarter of the consolidated fiscal year ending March 2027 (1 April 2026 to 30 September 2026) |
| Impact on Earnings Forecast | Revised the consolidated earnings forecast for the cumulative second quarter: net sales ¥5,449 million, operating loss ¥4,009 million, ordinary income ¥957 million, interim net income attributable to owners of the parent ¥645 million, and interim earnings per share ¥37.13. The full-year forecast was also revised to net sales of ¥11,188 million, operating loss of ¥6,035 million, ordinary income of ¥1,831 million, net income attributable to owners of the parent of ¥1,321 million, and earnings per share of ¥75.94 |
| Outlook | The Company will implement thorough cost control, including by establishing a more flexible procurement structure, and work to strengthen its earnings base. It will also continue to vigorously advance initiatives based on the basic policies and other elements of its medium- to long-term strategy, PAMCOvision2031 |
Items this document does not state (16)
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.Because a decline in profitability was identified for inventories. The share of profit of investments accounted for using the equity method was driven mainly by robust demand at an equity-method affiliate in the Philippines. Factors cited in the revision of the earnings forecasts include sluggish domestic demand in China, developments in the financial and capital markets, geopolitical risks, product prices, nickel ore, raw material and fuel, and electricity prices, and crude oil prices.