Notice Regarding Revisions to Earnings Forecasts and Recognition of an Extraordinary Loss
Sankyo Tateyama,Inc. (filing company)
Fixed assets related to the Building Materials business
Aluminum ingot prices have continued to rise over an extended period, upward price pressures have intensified, particularly due to escalating tensions in the Middle East, existing price hedges have not been functioning effectively, and there is a time lag in passing sharp price increases through to selling prices.
An impairment loss of ¥16 billion, recorded as an extraordinary loss, is expected to be recognized
The fiscal year ending May 2026 (1 June 2025 to 31 May 2026)
The full-year consolidated earnings forecasts for the fiscal year ending May 2026 have been revised. The revised forecasts are net sales of ¥357,000 million, operating profit of ¥1,500 million, ordinary profit of ¥800 million, net income attributable to owners of the parent of a loss of ¥14,000 million, and net income per share of a loss of ¥446.74.
Company response
Compensation for all executive officers will be reduced for the fiscal year ending May 2027. Monthly compensation will be reduced by 30% for the Representative Director, President and Executive Officer, 25% for Directors and Managing Executive Officers, 15% for Managing Executive Officers, and 10% for Executive Officers. The reduction will apply for 3 months from July 2026.
The carrying value of fixed assets related to the Building Materials business is expected to be reduced to the recoverable amount, with an impairment loss of ¥16 billion recognized. Compensation for all executive officers will be reduced for 3 months from July 2026.
| Item | Details |
|---|---|
| Event name | Notice Regarding Revisions to Earnings Forecasts and Recognition of an Extraordinary Loss |
| Subject Entity | Sankyo Tateyama,Inc. (filing company) |
| Target Locations / Products | Fixed assets related to the Building Materials business |
| Cause | Aluminum ingot prices have continued to rise over an extended period, upward price pressures have intensified, particularly due to escalating tensions in the Middle East, existing price hedges have not been functioning effectively, and there is a time lag in passing sharp price increases through to selling prices. |
| Amount of Impact on Business Performance | An impairment loss of ¥16 billion, recorded as an extraordinary loss, is expected to be recognized |
| Accounting period in which recognized | The fiscal year ending May 2026 (1 June 2025 to 31 May 2026) |
| Impact on Earnings Forecast | The full-year consolidated earnings forecasts for the fiscal year ending May 2026 have been revised. The revised forecasts are net sales of ¥357,000 million, operating profit of ¥1,500 million, ordinary profit of ¥800 million, net income attributable to owners of the parent of a loss of ¥14,000 million, and net income per share of a loss of ¥446.74. |
| Directors' and officers' liability | Compensation for all executive officers will be reduced for the fiscal year ending May 2027. Monthly compensation will be reduced by 30% for the Representative Director, President and Executive Officer, 25% for Directors and Managing Executive Officers, 15% for Managing Executive Officers, and 10% for Executive Officers. The reduction will apply for 3 months from July 2026. |
| Outlook | The carrying value of fixed assets related to the Building Materials business is expected to be reduced to the recoverable amount, with an impairment loss of ¥16 billion recognized. Compensation for all executive officers will be reduced for 3 months from July 2026. |
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.A severe operating environment was caused by a substantial decline in new housing starts in Japan, aluminum ingot prices rising more than expected, and a slowdown in the global economy amid overseas geopolitical risks and tariff developments. Meanwhile, reductions in fixed costs through earnings structure reforms, the containment of indirect costs and the implementation of price revisions contributed to upside in net sales, operating profit and ordinary profit. The impairment loss is attributable to a review of the earnings plan in light of the long-term rise in aluminum ingot prices, upward price pressures arising from the situation in the Middle East and delays in passing these increases through to selling prices.