Recognition of Non-operating Expenses and Extraordinary Losses and Difference Between the Consolidated Earnings Forecast and Actual Results
OKAYA ELECTRIC INDUSTRIES CO.,LTD. (reporting company)
The Company's Saitama Plant (Gyoda, Saitama), products for air-conditioning equipment, products for industrial equipment, capacitor products, and certain businesses
Fluctuations in foreign exchange rates, mainly the US dollar and Chinese yuan; difficulty recovering investments due to lower business earnings; a decline following the sharp increase in sales in prior fiscal years; a delayed recovery from inventory adjustments at customers supplied for industrial equipment; further increases in raw material costs; and temporary cost increases associated with the launch of new capacitor products and the restructuring of production lines
A foreign exchange loss of ¥48 million was recognized as a non-operating expense. An impairment loss of ¥340 million was recognized in the non-consolidated financial statements, with no impact on the consolidated financial statements. An impairment loss of ¥90 million was recognized in the consolidated financial statements. The differences between consolidated actual results and the forecast were as follows: net sales, down ¥772 million; operating profit, down ¥768 million; ordinary profit, down ¥826 million; and net income attributable to owners of the parent, down ¥674 million.
Fiscal year ending March 2026 (1 April 2025 to 31 March 2026)
A difference arose between the consolidated earnings forecast announced on 13 November 2025 and actual results for the fiscal year ending March 2026. Regarding revisions to the earnings forecast: Not disclosed.
The Company formulated its 12th Medium-Term Management Plan covering the period from April 2026 to March 2029. It will rebuild its management foundation by implementing measures to increase sales and improve profitability, strengthening its earnings-generating capabilities, and enhancing its corporate functions.
| Item | Details |
|---|---|
| Event name | Recognition of Non-operating Expenses and Extraordinary Losses and Difference Between the Consolidated Earnings Forecast and Actual Results |
| Date of occurrence | 31 March 2026 (end of the fiscal year ending March 2026) |
| Subject Entity | OKAYA ELECTRIC INDUSTRIES CO.,LTD. (reporting company) |
| Target Locations / Products | The Company's Saitama Plant (Gyoda, Saitama), products for air-conditioning equipment, products for industrial equipment, capacitor products, and certain businesses |
| Cause | Fluctuations in foreign exchange rates, mainly the US dollar and Chinese yuan; difficulty recovering investments due to lower business earnings; a decline following the sharp increase in sales in prior fiscal years; a delayed recovery from inventory adjustments at customers supplied for industrial equipment; further increases in raw material costs; and temporary cost increases associated with the launch of new capacitor products and the restructuring of production lines |
| Amount of Impact on Business Performance | A foreign exchange loss of ¥48 million was recognized as a non-operating expense. An impairment loss of ¥340 million was recognized in the non-consolidated financial statements, with no impact on the consolidated financial statements. An impairment loss of ¥90 million was recognized in the consolidated financial statements. The differences between consolidated actual results and the forecast were as follows: net sales, down ¥772 million; operating profit, down ¥768 million; ordinary profit, down ¥826 million; and net income attributable to owners of the parent, down ¥674 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 consolidated earnings forecast announced on 13 November 2025 and actual results for the fiscal year ending March 2026. Regarding revisions to the earnings forecast: Not disclosed. |
| Outlook | The Company formulated its 12th Medium-Term Management Plan covering the period from April 2026 to March 2029. It will rebuild its management foundation by implementing measures to increase sales and improve profitability, strengthening its earnings-generating capabilities, and enhancing its corporate functions. |
Items this document does not state (16)
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.The stated reasons include fluctuations in foreign exchange rates, difficulty recovering investments due to lower business earnings, a decline following the sharp increase in sales in prior fiscal years, a delayed recovery from inventory adjustments at customers supplied for industrial equipment, higher raw material costs, and temporary cost increases associated with the launch of new capacitor products and the restructuring of production lines.