Expected Recognition of Other Expenses (Consolidated), Non-operating Expenses and Extraordinary Losses (Non-consolidated), and Revisions to the Earnings Forecast
JTEKT Corporation and 7 consolidated subsidiaries engaged in the manufacture and sale of automotive parts to European customers
European automotive business; automotive parts for European customers
Deterioration in the financial condition of European subsidiaries, the transfer of the European automotive business, and the recognition of business restructuring costs in Europe
¥24.4 billion in the consolidated accounts (other expenses), and in the non-consolidated accounts, ¥28.6 billion in provision for doubtful accounts (non-operating expenses) and ¥32.2 billion (extraordinary loss)
Fiscal year ending March 2026 (1 April 2025 to 31 March 2026)
The full-year consolidated earnings forecast has been revised. Operating profit has been revised from ¥55,000 million to ¥22,000 million, profit before tax from ¥55,000 million to ¥22,000 million, and profit attributable to owners of the parent from ¥25,000 million to ¥10,000 million. Business profit has been revised from ¥65,000 million to ¥68,000 million.
¥28.6 billion (loans to European subsidiaries; provision for doubtful accounts)
The Company expects to recognize the stated losses and provision for doubtful accounts in the consolidated and non-consolidated accounts for the fiscal year ending March 2026.
| Item | Details |
|---|---|
| Event name | Expected Recognition of Other Expenses (Consolidated), Non-operating Expenses and Extraordinary Losses (Non-consolidated), and Revisions to the Earnings Forecast |
| Date of occurrence | 27 February 2026 (the date of the basic agreement concerning the transfer of the European automotive business) |
| Date recognized / date notice received | 19 March 2026 (the date on which the Company announced the expected recognition) |
| Subject Entity | JTEKT Corporation and 7 consolidated subsidiaries engaged in the manufacture and sale of automotive parts to European customers |
| Target Locations / Products | European automotive business; automotive parts for European customers |
| Cause | Deterioration in the financial condition of European subsidiaries, the transfer of the European automotive business, and the recognition of business restructuring costs in Europe |
| Amount of Impact on Business Performance | ¥24.4 billion in the consolidated accounts (other expenses), and in the non-consolidated accounts, ¥28.6 billion in provision for doubtful accounts (non-operating expenses) and ¥32.2 billion (extraordinary loss) |
| 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 forecast has been revised. Operating profit has been revised from ¥55,000 million to ¥22,000 million, profit before tax from ¥55,000 million to ¥22,000 million, and profit attributable to owners of the parent from ¥25,000 million to ¥10,000 million. Business profit has been revised from ¥65,000 million to ¥68,000 million. |
| Amount of receivables at risk of non-collection or delayed collection | ¥28.6 billion (loans to European subsidiaries; provision for doubtful accounts) |
| Outlook | The Company expects to recognize the stated losses and provision for doubtful accounts in the consolidated and non-consolidated accounts for the fiscal year ending March 2026. |
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.Based on results through February 2026 and recent market trends, business profit is expected to exceed the previous forecast. However, operating profit, profit before tax and profit attributable to owners of the parent are expected to fall below the previous forecasts due to the expected recognition of business restructuring costs in Europe, including losses associated with the transfer of the European automotive business.