Recognition of an Impairment Loss and Difference Between Consolidated Earnings Forecasts and Actual Results
TAIHO KOGYO CO.,LTD. (the Company)
Property, plant and equipment in the Non-Bearing Automotive Parts segment (the die-casting business and non-bearing business)
The Company expects achievement of the originally projected results to be delayed because profitability declined as orders decreased against a backdrop of changes in the business environment.
Impairment loss on fixed assets: ¥9,250 million (extraordinary loss); difference from the forecast in net income attributable to owners of the parent: ¥7,267 million decrease; gain on sale of investment securities: ¥1,658 million
Fiscal year ending March 2026 (1 April 2025 to 31 March 2026)
A difference arose between the previously announced forecast and the actual results announced today. Whether the earnings forecast will be revised is Not disclosed.
Achievement of the originally projected results is expected to be delayed.
| Item | Details |
|---|---|
| Event name | Recognition of an Impairment Loss and Difference Between Consolidated Earnings Forecasts and Actual Results |
| Subject Entity | TAIHO KOGYO CO.,LTD. (the Company) |
| Target Locations / Products | Property, plant and equipment in the Non-Bearing Automotive Parts segment (the die-casting business and non-bearing business) |
| Cause | The Company expects achievement of the originally projected results to be delayed because profitability declined as orders decreased against a backdrop of changes in the business environment. |
| Amount of Impact on Business Performance | Impairment loss on fixed assets: ¥9,250 million (extraordinary loss); difference from the forecast in net income attributable to owners of the parent: ¥7,267 million decrease; gain on sale of investment securities: ¥1,658 million |
| Accounting period in which recognized | Fiscal year ending March 2026 (1 April 2025 to 31 March 2026) |
| Impact on Earnings Forecast | A difference arose between the previously announced forecast and the actual results announced today. Whether the earnings forecast will be revised is Not disclosed. |
| Outlook | Achievement of the originally projected results is expected to be delayed. |
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.Net sales and operating income exceeded the forecasts due to the foreign exchange impact of the weaker yen and firm sales in the automotive parts business. Meanwhile, profitability declined because orders decreased against a backdrop of changes in the business environment, and the Company determined that achievement of the originally projected results would be delayed. As a result of reviewing the recoverability of fixed assets, the Company recognized an impairment loss. The gain on sale of investment securities was revised because the proposed purchase price in the tender offer was changed.