Decline in operating profit, ordinary profit and profit attributable to owners of the parent, with losses incurred

「Operating income increased ¥414 million year on year to ¥755 million, due mainly to the promotion of “Success 26V,” building on the results of rationalization activities in the previous fiscal year.」

「Despite lower profit associated with the decline in sales and preparation costs for full production at the Yorozu Sustainable Manufacturing Center (YSMC), which began operations in the previous fiscal year, operating profit increased approximately 13 times year on year to ¥3,980 million, owing to the group-wide promotion of rationalization initiatives under "Success 25V," which had stalled in the previous fiscal year due to cyberattacks and other factors, as well as quality improvements.」

「Despite lower profit associated with the decline in sales and preparation costs for full production at the Yorozu Sustainable Manufacturing Center (YSMC), which began operations last year, operating profit increased 8.4 times year on year to ¥1,009 million, owing to the advancement of the group-wide "Success 25V" rationalization initiative launched in January 2025 and quality improvements. Ordinary profit increased ¥2,801 million year on year to ¥842 million, due mainly to the improvement in operating profit. Interim net income attributable to owners of the parent increased ¥2,740 million year on year to ¥152 million.」

「Operating profit declined approximately 93.3% year on year to ¥298 million, despite rationalization through a review of the operating structure, owing to one-time quality costs incurred in the United States in the first quarter and lower production volumes in Japan and Asia. Ordinary profit was a loss of ¥2,077 million, a decline of ¥6,595 million from the previous year. Following a review of the future recoverability of property, plant and equipment in the Americas and Asia segments, the Company recognized ¥9,145 million in extraordinary losses due to impairment losses and the reversal of deferred tax assets. As a result, net income attributable to owners of the parent was a loss of ¥13,448 million, a decline of ¥9,522 million year on year.」

「Under these circumstances, the Group's net sales increased 7.9% from the same interim period of the previous year to ¥90,942 million, despite lower production volumes in Japan and Asia, due mainly to the translation impact of the weaker yen. Although operating profit reflected rationalization through a review of the operating structure, it declined 74.3% to ¥120 million from the same interim period of the previous year, owing to one-time quality costs in the Americas and lower production volumes in Japan and Asia. Ordinary profit was a loss of ¥1,958 million, a decline of ¥2,713 million from the same interim period of the previous year. Interim net income attributable to owners of the parent was a loss of ¥2,588 million, a decline of ¥2,647 million from the same interim period of the previous year.」

「Net sales increased 13.0% year on year to ¥181,468 million, due to higher production volumes and the translation impact of the weaker yen. Despite the impact of persistently high energy costs, rising labor costs and higher new-vehicle launch costs, operating profit increased approximately 44.4% year on year to ¥4,459 million, owing to the recovery in production volumes in Japan and the Americas and the effect of fixed-cost reductions. Net income attributable to owners of the parent was a loss of ¥3,926 million, a decline of ¥5,349 million from the previous year, due mainly to the recognition of impairment losses and higher tax expenses resulting from the reversal of deferred tax assets.」

「Under these circumstances, the Group's net sales increased 12.1% year on year to ¥129,115 million, due to the recovery in automotive production and the translation impact of the weaker yen. Operating profit declined 36.1% year on year to ¥1,015 million, owing to persistently high energy costs, rising labor costs and higher costs for launching new vehicles. Ordinary profit declined 51.5% year on year to ¥795 million, mainly due to higher interest expenses. Net income attributable to owners of the parent declined 96.4% year on year to ¥17 million, due to the recognition of corporate income taxes and deferred income taxes.」

「Under these circumstances, group revenue increased 17.1% year on year to ¥84,259 million due to the recovery in production volumes and the translation impact of the weaker yen. Operating profit declined 13.3% to ¥470 million, despite the continued use of an operating structure that adjusts production to fluctuations in production volumes, due to persistently high energy costs and higher labor costs, among other factors. Ordinary profit declined 3.2% to ¥754 million. Quarterly net profit attributable to owners of the parent declined 81.4% to ¥58 million due to the recognition of corporate income taxes and corporate income tax adjustments.」

「Under these circumstances, group revenue increased 24.1% year on year to ¥41,844 million due to the recovery in production volumes and the translation impact of the weaker yen. Operating profit increased by ¥201 million to ¥120 million due to the continued use of an operating structure that adjusts production to fluctuations in production volumes. Ordinary profit increased 137.9% to ¥376 million. Quarterly net loss attributable to owners of the parent was ¥197 million, down ¥124 million year on year, due to the recognition of corporate income taxes and corporate income tax adjustments.」

「Under these circumstances, group revenue increased 26.1% from the previous fiscal year to ¥160,560 million due to higher steel prices and the translation impact of the weaker yen. Operating profit increased approximately 47.3% to ¥3,088 million due to the thorough implementation of an operating structure that adjusts production to fluctuations in production volumes and fixed-cost reductions. Ordinary profit increased 31.0% to ¥2,992 million, partly due to the increase in operating profit. Net profit attributable to owners of the parent increased 62.3% to ¥1,422 million.」

「Under these circumstances, group revenue increased 29.6% year on year to ¥115,151 million due to higher steel prices and the translation impact of the weaker yen, despite an overall decline in production. Operating profit increased by ¥1,468 million year on year to ¥1,589 million, due mainly to the thorough implementation of an efficient production structure that adjusts output to production volumes and stops production when necessary, despite lower production and the impact of higher prices. Ordinary profit increased 603.6% to ¥1,641 million. Quarterly net profit attributable to owners of the parent turned from a loss of ¥81 million in the same period of the previous year into profit of ¥499 million.」

「Under these circumstances, group revenue increased 19.8% year on year to ¥71,966 million due to higher steel prices and the translation impact of the weaker yen, despite an overall decline in production. Operating profit increased 95.7% year on year to ¥542 million, despite lower production and the impact of higher prices, due mainly to the thorough implementation of a production structure that adjusts output to production volumes and stops production when necessary. Ordinary profit increased 153.3% to ¥779 million. Quarterly net profit attributable to owners of the parent turned from a loss of ¥129 million in the same period of the previous year into profit of ¥314 million.」

「Under these circumstances, group revenue increased 9.8% year on year to ¥33,712 million due to higher steel prices and the translation impact of the weaker yen, despite an overall decline in production volumes. Operating loss was ¥80 million, down ¥444 million from the same period of the previous year, due to lower production volumes and the impact of higher prices, despite thorough implementation of a production structure that adjusts output to production volumes and stops production when necessary. Ordinary profit declined 28.7% year on year but remained positive at ¥158 million, as the foreign exchange loss in the same period of the previous year turned into a foreign exchange gain. Quarterly net loss attributable to owners of the parent was ¥72 million due to the recognition of corporate income taxes and other items, despite improving by ¥72 million from the same period of the previous year.」

「Under these circumstances, group revenue increased 7.1% from the previous fiscal year to ¥127,316 million due to higher steel prices and the translation impact of the weaker yen. Operating profit increased approximately 5.6 times to ¥2,096 million, due to the thorough implementation of a production structure that adjusts output to production volumes and stops production when necessary, as well as fixed-cost reductions. Ordinary profit increased 57.7% to ¥2,284 million, partly due to the recognition of employment adjustment subsidies in addition to the increase in operating profit. Net profit attributable to owners of the parent improved by ¥7,072 million from the loss in the previous fiscal year to a profit of ¥876 million.」

「Under these circumstances, group revenue for the cumulative period increased 12.6% year on year to ¥88,836 million, as the significant increase in the first half outweighed the sharp slowdown in customer production due to the semiconductor shortage in the third quarter. In terms of earnings, rapid reviews of the production structure to match volumes and fixed-cost reductions from the emergency profitability improvement initiatives continued since the second half of fiscal 2019 led to a significant improvement from the operating loss recorded in the same period of the previous year, resulting in operating profit of ¥120 million. Ordinary profit was ¥233 million, an improvement of ¥2,373 million year on year, due to the increase in operating profit and the recognition of employment adjustment subsidies. Quarterly net loss attributable to owners of the parent was ¥81 million due to the increased corporate tax burden, although it improved by ¥2,144 million year on year.」

「Under these circumstances, group revenue increased 36.7% year on year to ¥60,049 million due to the recovery in demand in the automotive industry. In terms of earnings, demand recovery, rapid reviews of the production structure to match volumes, and fixed-cost reductions from the emergency profitability improvement initiatives continued since the second half of fiscal 2019 led to a significant improvement from the operating loss recorded in the same period of the previous year, resulting in operating profit of ¥277 million. Ordinary profit was ¥307 million, an improvement of ¥3,923 million year on year, due to the increase in operating profit and the recognition of employment adjustment subsidies. Quarterly net loss attributable to owners of the parent was ¥129 million due to the increased corporate tax burden, although it improved by ¥3,104 million year on year.」

「Under these circumstances, group revenue increased 28.1% year on year to ¥30,716 million due to the recovery in demand in the automotive industry. In terms of earnings, demand recovery, rapid reviews of the production structure to match volumes, and fixed-cost reductions from the emergency profitability improvement initiatives continued since the second half of fiscal 2019 led to a significant improvement from the operating loss recorded in the same period of the previous year, resulting in operating profit of ¥363 million. Ordinary profit was ¥221 million, an improvement of ¥2,485 million year on year, due to the increase in operating profit and the recognition of employment adjustment subsidies. Net loss attributable to owners of the parent was ¥145 million due to the recognition of corporate income taxes and other items, although it improved by ¥1,466 million year on year.」

「Under these circumstances, group revenue declined 24.6% from the previous fiscal year to ¥118,863 million, affected by customer shutdowns and production cuts accompanying the spread of COVID-19. In terms of earnings, although the Group recorded a significant operating loss in the first half, the recovery in production from the second half onward, rapid reviews of the production structure to match volumes, and the results of emergency profitability improvement initiatives continued from the second half of the previous fiscal year led to a significant overall improvement, resulting in operating profit of ¥377 million. Ordinary profit increased 88.1% from the previous fiscal year to ¥1,449 million, partly due to employment adjustment subsidies and foreign exchange gains. Net loss attributable to owners of the parent was ¥6,195 million.」

「Under these circumstances, group revenue declined 32.7% year on year to ¥78,928 million, affected by customer shutdowns and production cuts accompanying the spread of COVID-19. In terms of earnings, the Group continued to review its production structure and its emergency profitability improvement initiatives implemented since the second half of fiscal 2019, and also applied for employment adjustment subsidies, but these measures were insufficient to offset the losses incurred in the first half due to the significant decline in revenue. Operating loss was ¥2,778 million, ordinary loss was ¥2,140 million, and quarterly net loss attributable to owners of the parent was ¥2,225 million. However, the three-month third-quarter consolidated accounting period returned to profitability due to the effects of these improvements, substantially reducing the cumulative losses from the second-quarter consolidated cumulative period.」

「Under these circumstances, group revenue declined 43.8% year on year to ¥43,930 million, affected by customer shutdowns and production cuts accompanying the spread of COVID-19. In terms of earnings, the Group continued to review its production structure and its emergency profitability improvement initiatives implemented since the second half of fiscal 2019, and also applied for employment adjustment subsidies, but these measures were insufficient to offset the impact of lower revenue. Operating loss was ¥4,160 million, ordinary loss was ¥3,615 million, and quarterly net loss attributable to owners of the parent was ¥3,234 million.」

「Under these circumstances, group revenue declined 38.2% year on year to ¥23,981 million, affected by customer shutdowns and production cuts accompanying the spread of COVID-19. In terms of earnings, the Group continued its emergency profitability improvement initiatives implemented since the second half of fiscal 2019 and reviewed its production structure, but these measures were insufficient to offset the impact of lower revenue. Operating loss was ¥2,489 million, ordinary loss was ¥2,264 million, and quarterly net loss attributable to owners of the parent was ¥1,611 million.」

「Under these circumstances, group revenue declined 5.1% year on year to ¥117,265 million. In terms of earnings, operating profit declined 71.2% to ¥1,004 million due to lower production in Japan, China and Thailand, despite a significant improvement in profitability at the Tennessee operation in the United States amid declining production in the United States. Ordinary profit declined 88.6% to ¥416 million, mainly because the foreign exchange gain recorded in the same period of the previous year turned into a foreign exchange loss in the nine-month period of the third quarter. Quarterly net profit attributable to owners of the parent fell by ¥2,477 million to a loss of ¥396 million, partly due to the recognition of valuation losses on investment securities.」

「Under these circumstances, group revenue declined 5.1% year on year to ¥78,204 million. In terms of earnings, operating profit declined 89.8% to ¥264 million due to lower production in Japan, China and Thailand, despite a significant improvement in profitability at the Tennessee operation in the United States amid declining production in the United States. Ordinary profit fell by ¥3,222 million year on year to a loss of ¥432 million, mainly because the foreign exchange gain recorded in the same quarter of the previous year turned into a foreign exchange loss in the second quarter. Quarterly net profit attributable to owners of the parent fell by ¥2,506 million to a loss of ¥832 million, partly due to the recognition of valuation losses on investment securities.」

「Under these circumstances, group revenue declined 6.3% year on year to ¥38,828 million. In terms of earnings, operating profit declined 85.8% to ¥191 million due to lower production in Japan, China and Thailand, despite a significant improvement in profitability at the Tennessee operation in the United States. Ordinary profit fell by ¥1,468 million year on year to a loss of ¥6 million, mainly because the foreign exchange gain recorded in the same quarter of the previous year turned into a foreign exchange loss in the first quarter. Net profit attributable to owners of the parent fell by ¥925 million to a loss of ¥66 million.」

「Under these circumstances, group revenue declined 1.4% from the previous fiscal year to ¥169,111 million. In terms of earnings, operating profit declined 12.3% to ¥5,290 million and ordinary profit declined 7.5% to ¥5,222 million, due to lower production in Japan and the United States despite a significant improvement in profitability at the Tennessee operation in the United States. Net profit attributable to owners of the parent declined 85.2% to ¥402 million due to the recognition of an impairment loss on fixed assets at the India operation following a significant decline in the production volume of a major customer.」

「Under these circumstances, group revenue declined 2.6% year on year to ¥123,619 million. In terms of earnings, operating profit declined 4.2% to ¥3,484 million due to lower production in Japan and the United States, despite a significant improvement in profitability at the Tennessee operation in the United States. Ordinary profit declined 17.7% to ¥3,646 million due mainly to lower foreign exchange gains. Quarterly net profit attributable to owners of the parent declined 25.8% to ¥2,080 million, due to the decline in ordinary profit as well as the impact of tax effects associated with the reduction in the U.S. corporate tax rate.」

「Under these circumstances, group revenue declined 3.8% year on year to ¥82,433 million. In terms of earnings, operating profit declined 17.7% to ¥2,589 million due to lower production in Japan, the United States and Mexico, despite a significant improvement in profitability at the Tennessee operation in the United States. Ordinary profit declined 28.2% to ¥2,790 million due mainly to lower foreign exchange gains. Quarterly net profit attributable to owners of the parent declined 35.3% to ¥1,673 million, due to the decline in ordinary profit as well as the impact of tax effects associated with the reduction in the U.S. corporate tax rate.」

「Under these circumstances, group revenue declined 3.3% year on year to ¥41,423 million. In terms of earnings, operating profit increased 5.6% to ¥1,349 million, mainly due to improved profitability at the Tennessee operation in the United States. Ordinary profit declined 16.4% to ¥1,461 million due mainly to lower foreign exchange gains. Quarterly net profit attributable to owners of the parent declined 26.3% to ¥858 million, due to the decline in ordinary profit as well as the impact of tax effects associated with the reduction in the U.S. corporate tax rate.」

「Revenue for the third quarter was ¥126,937 million, up 3.2% year on year. In terms of earnings, operating profit declined 14.0% year on year to ¥3,637 million. Although profitability improved at the Tennessee operation in the United States, the decline was due to start-up costs at the new Alabama operation, higher depreciation expenses in Mexico, and deteriorating profitability in Brazil and Indonesia. Ordinary profit declined 2.3% to ¥4,432 million, and quarterly net profit attributable to owners of the parent declined 1.9% to ¥2,802 million.」

「Revenue for the second quarter was ¥85,709 million, up 3.0% year on year. In terms of earnings, operating profit increased 24.5% year on year to ¥3,148 million, mainly due to higher parts sales in Japan and China. Ordinary profit was approximately 8.5 times higher year on year at ¥3,888 million, mainly because the foreign exchange loss recorded in the same quarter of the previous year turned into a foreign exchange gain in the second quarter. Quarterly net profit attributable to owners of the parent consequently increased by ¥2,875 million to ¥2,584 million.」

「Revenue for the first quarter was ¥42,848 million, up 3.2% year on year. In terms of earnings, operating profit increased 17.5% year on year to ¥1,278 million, mainly due to higher parts sales in Japan and China. Ordinary profit increased by ¥2,138 million to ¥1,748 million, mainly because the foreign exchange loss recorded in the same quarter of the previous year turned into a foreign exchange gain in the first quarter. Quarterly net profit attributable to owners of the parent likewise increased by ¥2,027 million to ¥1,164 million.」

「In terms of earnings, operating profit declined 36.8% year on year to ¥6,327 million due mainly to higher labor costs resulting from tight labor market conditions caused by economic expansion in the United States. Ordinary profit declined 14.8% to ¥6,265 million. Net profit attributable to owners of the parent increased 7.6% to ¥3,980 million, due mainly to a lower tax burden.」

「Revenue for the third quarter declined 3.3% year on year to ¥122,961 million, despite an increase in local-currency revenue at overseas operations, due to the impact of the stronger yen. In terms of earnings, operating profit declined 39.4% year on year to ¥4,231 million due mainly to higher labor costs resulting from tight labor market conditions caused by economic expansion in the United States. Ordinary profit fell 24.9% year on year to ¥4,535 million, and quarterly net profit attributable to owners of the parent declined 11.3% to ¥2,855 million.」

「Revenue for the second quarter was ¥83,173 million, down 0.5% year on year. In terms of earnings, operating profit declined 40.3% year on year to ¥2,528 million due mainly to higher labor costs resulting from tight labor market conditions caused by economic expansion in the United States. Ordinary profit fell 85.9% year on year to ¥456 million, mainly due to increased foreign exchange losses. Quarterly net profit attributable to owners of the parent fell by ¥1,794 million year on year to a loss of ¥290 million.」

「Revenue for the first quarter was ¥41,519 million, up 0.4% year on year. In terms of earnings, operating profit declined 34.5% year on year to ¥1,087 million due mainly to higher labor costs resulting from tight labor market conditions caused by economic expansion in the United States. Ordinary profit fell by ¥2,491 million year on year to a loss of ¥390 million, mainly because foreign exchange gains recorded in the same quarter of the previous year turned into foreign exchange losses in the first quarter. Quarterly net profit attributable to owners of the parent fell by ¥1,991 million year on year to a loss of ¥863 million.」