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Earnings presentation5632Mitsubishi Steel Mfg.Co.,Ltd.Iron and Steel and Nonferrous Metals

Financial Results Briefing Materials for the Second Quarter of the Fiscal Year Ending March 2027

In the first half of the fiscal year ending March 2027, revenue increased by ¥2.1 billion year on year and operating profit by ¥0.8 billion, resulting in higher revenue and profit. Although first-half results exceeded the initial forecast, the company left its full-year forecast unchanged due to uncertainty in the second half.

Worth reading
56In focus
0–100. This measures how worthwhile something is to read, not how good or bad the company is.
Direction
Improvement
Direction inferred from the company’s description.
Scale
8
¥100 million (year-on-year increase in operating profit)
Wording
Avoiding a definitive answer
How definitive the wording is.

Contents of this document

Earnings presentationSecond quarter of the fiscal year ending March 202711 items taken from the company’s own explanation
Financial Results Figures (The key points of this material are explained below)
Net Sales¥820 100 million+2.6%
Operating profit¥29 100 million+38.1%
Ordinary income¥23 100 million+64.3%
Net income¥12 100 million+71.4%
Full-year earnings forecast
Net Sales
¥1,660 100 million
Operating profit
¥64 100 million
Ordinary income
¥51 100 million
Profit attributable to owners of the parent
¥31 100 million
What the company explained in this material
Self-assessment against the planThe company's self-assessment against its own plan.
First-half results exceeded both the year-earlier period and the initial forecast
Breakdown of Factors Affecting the ChangeReasons cited by the Company for the change in the figures.
Improved selling prices, higher sales volumes, increased orders, higher productivity, improved earnings in the Specialty Steel Products business, lower volumes of precision components, and higher costs associated with the situation in the Middle East, among other factors
Assumptions Underlying the Business OutlookThe assumptions used by the company in preparing its forecast.
Exchange rate
¥160 /US$ equivalent, assumed at 31 March 2027
New initiatives
  • Improved selling prices
  • Reduction in production costs
  • Improved productivity and structural reform at the North American subsidiary
Key KPIsA metric the company considers important as a management benchmark.
  • Steel sales volume (domestic, cumulative)158 thousand tonnes
    Year on year against the same period last year-8.0%
  • Steel sales volume (overseas, cumulative)47 thousand tonnes
    Year on year against the same period last year+14.6%
Unit price and quantity metricsThese figures show sales broken down by price and volume.
Includes information on domestic and overseas steel sales volumes and improved selling prices
Segment results
Specialty steel materials
Net Sales
¥375 100 million-0.5%
Operating profit
¥4 100 million
Springs
Net Sales
¥367 100 million+1.7%
Operating profit
¥11 100 million-26.7%
Fabricated materials
Net Sales
¥55 100 million+22.2%
Operating profit
¥6 100 million+100.0%
Equipment
Net Sales
¥64 100 million+18.5%
Operating profit
¥7 100 million+133.3%
Other
Net Sales
¥21 100 million+10.5%
Operating profit
¥1 100 million0.0%
Financial targets
Equity ratio
Fiscal year ending March 2027, forecast34 %
ROE
Fiscal year ending March 2027, forecast6.3 %
Net debt-to-equity ratio
Fiscal year ending March 2027, forecast0.6 times
DOE
Fiscal year ending March 2027, forecast3.5 %
Capital expenditures
¥58 100 million
Annual Dividend
¥104 per share
Payout ratio
50.7 %
DOE
3.5 %
Contents of this document
ItemDetails
Document typeEarnings presentation
Fiscal Period CoveredSecond quarter of the fiscal year ending March 2027
Net Sales¥820 100 million (YoY +2.6%)
Operating profit¥29 100 million (YoY +38.1%)
Ordinary income¥23 100 million (YoY +64.3%)
Net income¥12 100 million (YoY +71.4%)
Full-year earnings forecastNet Sales ¥1,660 100 million / Operating profit ¥64 100 million / Ordinary income ¥51 100 million / Profit attributable to owners of the parent ¥31 100 million
Self-assessment against the planFirst-half results exceeded both the year-earlier period and the initial forecast
Segment resultsSpecialty steel materials Net Sales ¥375 100 million (YoY -0.5%) / Operating profit ¥4 100 million / Springs Net Sales ¥367 100 million (YoY +1.7%) / Operating profit ¥11 100 million (YoY -26.7%) / Fabricated materials Net Sales ¥55 100 million (YoY +22.2%) / Operating profit ¥6 100 million (YoY +100.0%) / Equipment Net Sales ¥64 100 million (YoY +18.5%) / Operating profit ¥7 100 million (YoY +133.3%) / Other Net Sales ¥21 100 million (YoY +10.5%) / Operating profit ¥1 100 million (YoY 0.0%)
Breakdown of Factors Affecting the ChangeImproved selling prices, higher sales volumes, increased orders, higher productivity, improved earnings in the Specialty Steel Products business, lower volumes of precision components, and higher costs associated with the situation in the Middle East, among other factors
Key KPIsIndicator name Steel sales volume (domestic, cumulative) / Value 158 thousand tonnes / Year on year against the same period last year -8 thousand tonnes, Indicator name Steel sales volume (overseas, cumulative) / Value 47 thousand tonnes / Year on year against the same period last year 14.6 thousand tonnes
Unit price and quantity metricsIncludes information on domestic and overseas steel sales volumes and improved selling prices
Assumptions Underlying the Business OutlookExchange rate ¥160 /US$ equivalent, assumed at 31 March 2027
Financial targetsEquity ratio Fiscal year ending March 2027, forecast 34 % / ROE Fiscal year ending March 2027, forecast 6.3 % / Net debt-to-equity ratio Fiscal year ending March 2027, forecast 0.6 times / DOE Fiscal year ending March 2027, forecast 3.5 %
Annual Dividend¥104 per share
Payout ratio50.7 %
Capital expenditures¥58 100 million
New initiativesImproved selling prices, Reduction in production costs, Improved productivity and structural reform at the North American subsidiary
Items this document does not state (13)
Gross Profit MarginOperating profit marginSelling, general and administrative expensesResults for the three months of the current quarterProgress against full-year forecastNumber of stores and locationsNumber of employeesRisk amount incorporated into the outlookMedium-term management plan targetsAcquisition of treasury sharesOrders received and order backlogMarket Size / ShareKey points of the Q&A

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 main reasons for the increases in revenue and profit were progress in improving selling prices in the Materials and Formed Products business, growth in the Machinery and Equipment business on strong orders, and improved earnings in the Specialty Steel Products business. In the Springs business, lower volumes of precision components and higher costs associated with the situation in the Middle East were factors behind the decline in profit.

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Financial Results Briefing Materials for the Second Quarter of the Fiscal Year Ending March 2027 | Mitsubishi Steel Mfg.Co.,Ltd. (5632) timely disclosure | Komori