Notice Regarding Impairment Loss on Fixed Assets, Revision of Full-Year Consolidated Earnings Forecasts, and Revision of Dividend Forecast (Dividend Cut)
NICHIDAI CORPORATION (filing company)
Domestic locations of the Precision Parts Business
Production systems and inventory levels at finished vehicle manufacturers in the Japanese automotive industry, the Company's main customer industry, continue to be reviewed, and the recovery in the automotive-related market has lacked strength, causing sales in the Precision Parts Business to stagnate. In addition, sales in the Die Business and Precision Parts Business fell below expectations, various costs including raw material costs increased, and foreign exchange valuation losses arose on foreign-currency-denominated receivables of overseas subsidiaries.
¥232 million (expected to be recorded as an impairment loss under extraordinary losses)
Fiscal year ending March 2026 (1 April 2025 to 31 March 2026)
The full-year consolidated earnings forecasts have been revised. The revised forecasts are sales of ¥10,985 million, an operating loss of ¥425 million, an ordinary loss of ¥469 million, a net loss attributable to owners of the parent of ¥792 million, and a loss per share of ¥87.69. The full-year dividend forecast has been revised from ¥6 to ¥4 per share.
The Company expects to record an impairment loss of ¥232 million as an extraordinary loss in its financial statements for the fiscal year ending March 2026. The annual dividend is expected to total ¥4 per share, consisting of an interim dividend of ¥2 and a year-end dividend of ¥2.
| Item | Details |
|---|---|
| Event name | Notice Regarding Impairment Loss on Fixed Assets, Revision of Full-Year Consolidated Earnings Forecasts, and Revision of Dividend Forecast (Dividend Cut) |
| Subject Entity | NICHIDAI CORPORATION (filing company) |
| Target Locations / Products | Domestic locations of the Precision Parts Business |
| Cause | Production systems and inventory levels at finished vehicle manufacturers in the Japanese automotive industry, the Company's main customer industry, continue to be reviewed, and the recovery in the automotive-related market has lacked strength, causing sales in the Precision Parts Business to stagnate. In addition, sales in the Die Business and Precision Parts Business fell below expectations, various costs including raw material costs increased, and foreign exchange valuation losses arose on foreign-currency-denominated receivables of overseas subsidiaries. |
| Amount of Impact on Business Performance | ¥232 million (expected to be recorded as an impairment loss under extraordinary losses) |
| Accounting period in which recognized | Fiscal year ending March 2026 (1 April 2025 to 31 March 2026) |
| Impact on Earnings Forecast | The full-year consolidated earnings forecasts have been revised. The revised forecasts are sales of ¥10,985 million, an operating loss of ¥425 million, an ordinary loss of ¥469 million, a net loss attributable to owners of the parent of ¥792 million, and a loss per share of ¥87.69. The full-year dividend forecast has been revised from ¥6 to ¥4 per share. |
| Outlook | The Company expects to record an impairment loss of ¥232 million as an extraordinary loss in its financial statements for the fiscal year ending March 2026. The annual dividend is expected to total ¥4 per share, consisting of an interim dividend of ¥2 and a year-end dividend of ¥2. |
Items this document does not state (17)
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.Production systems and inventory levels at finished vehicle manufacturers in the Japanese automotive industry, the Company's main customer industry, continue to be reviewed, and the recovery in the automotive-related market has remained weak, causing sales in the Precision Parts Business to stagnate. In addition, sales in the Die Business and Precision Parts Business fell below expectations, costs including raw material costs increased, foreign exchange valuation losses arose on foreign-currency-denominated receivables of overseas subsidiaries, and an impairment loss is expected to be recognized.