Notice of Revisions to Full-Year Consolidated Financial Forecasts and Recognition of an Extraordinary Loss
FINE SINTER CO.,LTD., Precision Sintered Alloy (Wuxi) Co., Ltd., and American Fine Sinter Co, Ltd.
Fixed assets, mainly machinery and equipment, of Precision Sintered Alloy (Wuxi) Co., Ltd.; the production site of American Fine Sinter Co, Ltd.; fixed assets related to the automotive sintered-products business at the Yamashina Plant; the asset group at the Shiga Plant; and software under development at the Kasugai Plant
Although operating performance was generally in line with the previous forecast, supported by strong orders from customers and progress in improvement initiatives, the company incurred losses associated with the suspension of operations at the U.S. subsidiary, a review of the residual value of fixed assets, impairment of fixed assets and software under development, and a review of the recoverability of deferred tax assets based on business performance trends and the outlook.
① An additional ¥408 million in depreciation expenses will be recorded in cost of sales; ② an extraordinary loss of ¥2,277 million associated with the suspension of operations at American Fine Sinter Co, Ltd.; ③ extraordinary losses of ¥386 million at the company, comprising an impairment loss of ¥227 million at the Yamashina Plant and an impairment loss of ¥158 million at the Kasugai Plant; and ④ ¥401 million in income tax adjustments related to the reversal of deferred tax assets
Fiscal year ending March 2026 (1 April 2025 to 31 March 2026)
The revised figures are revenue of ¥46,206 million, operating profit of ¥1,195 million, ordinary profit of ¥754 million, net income attributable to owners of the parent of negative ¥2,414 million, and basic earnings per share of negative ¥564.13. Compared with the previous forecast, revenue increased by ¥2,206 million, operating profit decreased by ¥304 million, ordinary profit decreased by ¥345 million, and net income attributable to owners of the parent decreased by ¥3,364 million.
Company response
Production at American Fine Sinter Co, Ltd. was gradually discontinued and transferred to other sites within the group.
After gradually discontinuing production at American Fine Sinter Co, Ltd., production will be transferred to other sites within the group.
| Item | Details |
|---|---|
| Event name | Notice of Revisions to Full-Year Consolidated Financial Forecasts and Recognition of an Extraordinary Loss |
| Date of occurrence | 31 March 2026 (accounting treatment as of the end of the fiscal year ending March 2026) |
| Subject Entity | FINE SINTER CO.,LTD., Precision Sintered Alloy (Wuxi) Co., Ltd., and American Fine Sinter Co, Ltd. |
| Target Locations / Products | Fixed assets, mainly machinery and equipment, of Precision Sintered Alloy (Wuxi) Co., Ltd.; the production site of American Fine Sinter Co, Ltd.; fixed assets related to the automotive sintered-products business at the Yamashina Plant; the asset group at the Shiga Plant; and software under development at the Kasugai Plant |
| Cause | Although operating performance was generally in line with the previous forecast, supported by strong orders from customers and progress in improvement initiatives, the company incurred losses associated with the suspension of operations at the U.S. subsidiary, a review of the residual value of fixed assets, impairment of fixed assets and software under development, and a review of the recoverability of deferred tax assets based on business performance trends and the outlook. |
| Amount of Impact on Business Performance | ① An additional ¥408 million in depreciation expenses will be recorded in cost of sales; ② an extraordinary loss of ¥2,277 million associated with the suspension of operations at American Fine Sinter Co, Ltd.; ③ extraordinary losses of ¥386 million at the company, comprising an impairment loss of ¥227 million at the Yamashina Plant and an impairment loss of ¥158 million at the Kasugai Plant; and ④ ¥401 million in income tax adjustments related to the reversal of deferred tax assets |
| Accounting period in which recognized | Fiscal year ending March 2026 (1 April 2025 to 31 March 2026) |
| Impact on Earnings Forecast | The revised figures are revenue of ¥46,206 million, operating profit of ¥1,195 million, ordinary profit of ¥754 million, net income attributable to owners of the parent of negative ¥2,414 million, and basic earnings per share of negative ¥564.13. Compared with the previous forecast, revenue increased by ¥2,206 million, operating profit decreased by ¥304 million, ordinary profit decreased by ¥345 million, and net income attributable to owners of the parent decreased by ¥3,364 million. |
| Suspended operations | Production at American Fine Sinter Co, Ltd. was gradually discontinued and transferred to other sites within the group. |
| Outlook | After gradually discontinuing production at American Fine Sinter Co, Ltd., production will be transferred to other sites within the group. |
Items this document does not state (15)
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.Although operating performance was generally in line with the previous forecast, supported by strong orders from customers and progress in improvement initiatives, the company incurred extraordinary losses associated with the suspension of operations at a consolidated subsidiary, a review of the residual value of fixed assets at the end of the fiscal year, impairment losses at domestic sites and the reversal of deferred tax assets.