Recognition of an Impairment Loss on Fixed Assets and Revision of Earnings Forecasts
The Company (the filing company)
Fixed assets, including machinery and equipment, in the industrial equipment and components market of the Machinery Components Business; cemented carbide components for twin-screw kneading extruders
Demand has remained delayed relative to initial expectations due to the lack of momentum in EV demand and other factors, and demand for certain products is expected to decline as rising raw material prices increase costs.
Approximately ¥800 million (extraordinary loss, impairment loss; expected to be recognized)
The fourth quarter of the fiscal year ending March 2026
The consolidated and non-consolidated full-year earnings forecasts for the fiscal year ending March 2026 have been revised. On a consolidated basis, net sales are ¥12,800 million, operating income is ¥710 million, ordinary income is ¥1,130 million, net income attributable to owners of the parent is ¥270 million, and net income per share is ¥55.67. On a non-consolidated basis, net sales are ¥11,630 million, ordinary income is ¥940 million, net income is ¥160 million, and net income per share is ¥32.99. The year-end dividend forecast remains unchanged.
For cemented carbide components for twin-screw kneading extruders, the Company will develop products that use less raw material while accelerating the development of products using materials other than cemented carbide.
| Item | Details |
|---|---|
| Event name | Recognition of an Impairment Loss on Fixed Assets and Revision of Earnings Forecasts |
| Subject Entity | The Company (the filing company) |
| Target Locations / Products | Fixed assets, including machinery and equipment, in the industrial equipment and components market of the Machinery Components Business; cemented carbide components for twin-screw kneading extruders |
| Cause | Demand has remained delayed relative to initial expectations due to the lack of momentum in EV demand and other factors, and demand for certain products is expected to decline as rising raw material prices increase costs. |
| Amount of Impact on Business Performance | Approximately ¥800 million (extraordinary loss, impairment loss; expected to be recognized) |
| Accounting period in which recognized | The fourth quarter of the fiscal year ending March 2026 |
| Impact on Earnings Forecast | The consolidated and non-consolidated full-year earnings forecasts for the fiscal year ending March 2026 have been revised. On a consolidated basis, net sales are ¥12,800 million, operating income is ¥710 million, ordinary income is ¥1,130 million, net income attributable to owners of the parent is ¥270 million, and net income per share is ¥55.67. On a non-consolidated basis, net sales are ¥11,630 million, ordinary income is ¥940 million, net income is ¥160 million, and net income per share is ¥32.99. The year-end dividend forecast remains unchanged. |
| Outlook | For cemented carbide components for twin-screw kneading extruders, the Company will develop products that use less raw material while accelerating the development of products using materials other than cemented carbide. |
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.The business earnings and future recoverability of the assets subject to the impairment fell below initial expectations because the momentum in EV demand weakened, demand for automotive components and secondary batteries was pushed back further than initially expected, and demand for certain products is expected to decline following a sharp surge in raw material prices.