Recognition of Extraordinary Losses and Variance from Full-Year Earnings Forecast (Upward Revision)
NIPPON CHUZO K.K. (the "Company" in the body of the notice)
Ikegami District Plant (Ikegami District). Target products: Not disclosed
The Company decided to remove equipment at the Ikegami District Plant that it determined was unlikely to be used, and was required to restore the premises to their original condition under the lease agreement with JFE Steel Corporation. The factors behind the variance from the earnings forecast were increased orders for cast steel products for semiconductor manufacturing equipment and improved productivity in the Foundry Materials business, cost reductions on large-scale projects in the Engineering business, and actuarial differences resulting from the revision of the discount rate for retirement benefit obligations due to rising interest rates.
Equipment removal costs: ¥180 million; impairment loss: ¥242 million. The variance between the full-year non-consolidated earnings forecast and actual results for the fiscal year ending March 2026 was as follows: net sales, −¥9 million; operating income, +¥356 million; ordinary income, +¥364 million; net income, +¥264 million. The extraordinary losses consisted of equipment removal costs and an impairment loss.
Fiscal year ending March 2026 (1 April 2025 to 31 March 2026)
There was a variance between the previous forecast and actual results for the fiscal year ending March 2026, resulting in an upward revision. The previous forecast was net sales of ¥12,300 million, operating income of ¥60 million, ordinary income of ¥220 million and net loss of ¥110 million. Actual results were net sales of ¥12,290 million, operating income of ¥416 million, ordinary income of ¥584 million and net income of ¥154 million. The year-end dividend forecast remains unchanged at ¥20 per share.
Company response
Operations at the Ikegami District (ended in September 2023)
At the Ikegami District, the Company plans to hand over or demolish the plant buildings and other assets, and terminate the lease agreement with JFE Steel Corporation after completion.
| Item | Details |
|---|---|
| Event name | Recognition of Extraordinary Losses and Variance from Full-Year Earnings Forecast (Upward Revision) |
| Subject Entity | NIPPON CHUZO K.K. (the "Company" in the body of the notice) |
| Target Locations / Products | Ikegami District Plant (Ikegami District). Target products: Not disclosed |
| Cause | The Company decided to remove equipment at the Ikegami District Plant that it determined was unlikely to be used, and was required to restore the premises to their original condition under the lease agreement with JFE Steel Corporation. The factors behind the variance from the earnings forecast were increased orders for cast steel products for semiconductor manufacturing equipment and improved productivity in the Foundry Materials business, cost reductions on large-scale projects in the Engineering business, and actuarial differences resulting from the revision of the discount rate for retirement benefit obligations due to rising interest rates. |
| Amount of Impact on Business Performance | Equipment removal costs: ¥180 million; impairment loss: ¥242 million. The variance between the full-year non-consolidated earnings forecast and actual results for the fiscal year ending March 2026 was as follows: net sales, −¥9 million; operating income, +¥356 million; ordinary income, +¥364 million; net income, +¥264 million. The extraordinary losses consisted of equipment removal costs and an impairment loss. |
| Accounting period in which recognized | Fiscal year ending March 2026 (1 April 2025 to 31 March 2026) |
| Impact on Earnings Forecast | There was a variance between the previous forecast and actual results for the fiscal year ending March 2026, resulting in an upward revision. The previous forecast was net sales of ¥12,300 million, operating income of ¥60 million, ordinary income of ¥220 million and net loss of ¥110 million. Actual results were net sales of ¥12,290 million, operating income of ¥416 million, ordinary income of ¥584 million and net income of ¥154 million. The year-end dividend forecast remains unchanged at ¥20 per share. |
| Suspended operations | Operations at the Ikegami District (ended in September 2023) |
| Outlook | At the Ikegami District, the Company plans to hand over or demolish the plant buildings and other assets, and terminate the lease agreement with JFE Steel Corporation after completion. |
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.The extraordinary losses resulted from the decision to remove equipment at the Ikegami District Plant that is unlikely to be used, as well as the need to fulfill the obligation to restore the premises to their original condition under the lease agreement with JFE Steel Corporation. The variance from the earnings forecast was attributed to a substantial increase in orders for cast steel products for semiconductor manufacturing equipment in the Foundry Materials business, which improved operating rates and productivity; cost reductions on large-scale projects in the Engineering business, which resulted in a higher-than-expected profit margin; and actuarial differences resulting from the revision of the discount rate for retirement benefit obligations from 0.9% to 2.9% due to rising interest rates.