Cessation of Operations of a Consolidated Subsidiary and Recognition of Extraordinary Loss Associated with the Cessation of Operations
American Fine Sinter Co., Ltd. (AFS, a consolidated subsidiary of FINE SINTER CO.,LTD.; FINE SINTER CO.,LTD. ownership interest: 100%)
The site at 957 North Maule Road, Tiffin, OH 44883, U.S.A. Automotive sintered products, particularly internal combustion engine components and transmission components
AFS's performance has deteriorated due to declining sales. The Company cites the optimization of its production structure and the acceleration of structural reforms in light of demand trends and production efficiency as the reasons.
The Company expects to record an impairment loss of ¥1,915 million and an inventory valuation loss of ¥473 million as extraordinary losses. Costs including additional retirement allowances are expected to arise from the next fiscal year onward, but the amounts are still under review.
Fiscal year ending March 2026
The consolidated earnings forecast for the fiscal year ending March 2026 is currently under review, and the Company will promptly disclose the information once disclosure becomes possible.
Company response
The production operations for AFS's automotive sintered products will be phased out and terminated, and production will be transferred to other sites within the Group.
AFS's production will be phased out by the end of March 2028 and transferred to other sites. The Company plans to continue supplying products to customers. The earnings forecast for the fiscal year ending March 2026 and costs including additional retirement allowances from the next fiscal year onward will be disclosed after review.
The Company will promptly provide an update once disclosure of the earnings forecast becomes possible.
| Item | Details |
|---|---|
| Event name | Cessation of Operations of a Consolidated Subsidiary and Recognition of Extraordinary Loss Associated with the Cessation of Operations |
| Date of occurrence | 28 April 2026 (date of the Board of Directors' resolution; AFS operations are scheduled to cease by the end of March 2028) |
| Subject Entity | American Fine Sinter Co., Ltd. (AFS, a consolidated subsidiary of FINE SINTER CO.,LTD.; FINE SINTER CO.,LTD. ownership interest: 100%) |
| Target Locations / Products | The site at 957 North Maule Road, Tiffin, OH 44883, U.S.A. Automotive sintered products, particularly internal combustion engine components and transmission components |
| Cause | AFS's performance has deteriorated due to declining sales. The Company cites the optimization of its production structure and the acceleration of structural reforms in light of demand trends and production efficiency as the reasons. |
| Amount of Impact on Business Performance | The Company expects to record an impairment loss of ¥1,915 million and an inventory valuation loss of ¥473 million as extraordinary losses. Costs including additional retirement allowances are expected to arise from the next fiscal year onward, but the amounts are still under review. |
| Accounting period in which recognized | Fiscal year ending March 2026 |
| Impact on Earnings Forecast | The consolidated earnings forecast for the fiscal year ending March 2026 is currently under review, and the Company will promptly disclose the information once disclosure becomes possible. |
| Suspended operations | The production operations for AFS's automotive sintered products will be phased out and terminated, and production will be transferred to other sites within the Group. |
| Outlook | AFS's production will be phased out by the end of March 2028 and transferred to other sites. The Company plans to continue supplying products to customers. The earnings forecast for the fiscal year ending March 2026 and costs including additional retirement allowances from the next fiscal year onward will be disclosed after review. |
| Planned follow-up disclosure | The Company will promptly provide an update once disclosure of the earnings forecast becomes possible. |
Items this document does not state (14)
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.AFS's performance has deteriorated due to declining sales. The Company aims to optimize its global production structure and advance structural reforms in light of demand trends and production efficiency. Production will be transferred to other sites so that product supply to customers can continue while improving the Group's earnings capacity and financial position.