Worth reading
67In focus
0–100. This measures how worthwhile something is to read, not how good or bad the company is.Direction
Mixed performance
Direction inferred from the company’s description.Scale
-1
Year-on-year revenue growth (%)Wording
Avoiding a definitive answer
How definitive the wording is.Contents of this document
Earnings presentationFirst quarter of the fiscal year ending March 20279 items taken from the company’s own explanation
Financial Results Figures (The key points of this material are explained below)
Net Sales¥61,559 million-1.0%
Operating profit¥1,111 million-8.1%
Ordinary income¥1,384 million+11.4%
Net income¥877 million+9.0%
Gross Profit Margin11.3 %
Selling, general and administrative expenses¥5,872 million
Results for the three months of the current quarter
Net Sales
¥61,559 million
Operating profit
¥1,111 million
Ordinary income
¥1,384 million
Net income attributable to owners of the parent
¥877 million
Full-year earnings forecast
Net Sales
¥274,600 million
Operating profit
¥6,300 million
Ordinary income
¥6,200 million
Net income attributable to owners of the parent
¥4,100 million
Progress against full-year forecast 通期の予想に対して、いまどこまで進んだかの割合です。
Net Sales22.4%
Operating profit17.6%
Ordinary income22.3%
Net income attributable to owners of the parent21.4%
By segmentKyushu and Okinawa: net sales 20.5%, operating profit 16.7%; Chugoku and Shikoku: net sales 20.2%, operating profit 9.4%; Kansai and Chukyo: net sales 21.6%, operating profit 36.0%; Kanto and Tohoku: net sales 25.5%, operating profit 11.2%
By product typeFlat products: net sales 24.1%, sales volume 24.8%, gross profit 24.9%; long products: net sales 24.4%, sales volume 25.2%, gross profit 27.6%; round steel products: net sales 22.9%, sales volume 22.7%, gross profit 24.1%; steel business: net sales 24.0%, sales volume 24.6%, gross profit 26.1%; construction equipment products: net sales 17.0%, gross profit 17.0%; construction equipment projects: net sales 20.7%, gross profit 21.2%; other businesses: revenue 28.4%, gross profit 26.5%; consolidated net sales 22.4%, gross profit 23.6%
What the company explained in this material
Self-assessment against the planThe company's self-assessment against its own plan.
In the Kyushu and Okinawa and Kanto and Tohoku areas, earnings remained weak relative to plan due to delays in construction projects and the impact of costs being incurred ahead of revenue.Breakdown of Factors Affecting the ChangeReasons cited by the Company for the change in the figures.
Year-on-year operating profit
Steel price factors630
Steel volume factors199
Building materials and other factors-290
Selling, general and administrative expense factor-636
Quarter-on-quarter operating profit
Steel price factors295
Steel volume factors53
Building materials and other factors-364
Selling, general and administrative expense factor-385
Assumptions Underlying the Business OutlookThe assumptions used by the company in preparing its forecast.
The impact of the Kumamoto earthquake cannot reasonably be calculated at this time. Demand for steel products may increase as reconstruction and recovery projects proceed, but the timing and scale of such demand remain unclear.New initiatives
- Acquisition of shares in 三友鋼材株式会社
- Strengthening inventory at each location
- Enhancement of processing equipment
- Strengthening the Delivery System
- Supporting recovery and reconstruction in disaster-affected areas and restoring normal business operations as soon as possible
Key KPIsA metric the company considers important as a management benchmark.
- Steel business sales volume420 thousand tonnesYear on year against the same period last year+5.8%
- Steel business selling price115.24 Yen/kgYear on year against the same period last year-1.2%
- Flat product sales volume191 thousand tonnesYear on year against the same period last year+3.8%
- Long product sales volume153 thousand tonnesYear on year against the same period last year+7.7%
- Round steel product sales volume75 thousand tonnesYear on year against the same period last year+8.7%
Unit price and quantity metricsThese figures show sales broken down by price and volume.
- Steel platesSales volume191 thousand tonnesSelling price¥106.94/kg
- Bar steel productsSales volume153 thousand tonnesSelling price¥131.45/kg
- Round steel productsSales volume75 thousand tonnesSelling price¥103.25/kg
- Steel business subtotalSales volume420 thousand tonnesSelling price¥115.24/kg
Segment results
- Kyushu and OkinawaNet Sales¥26,504 million (YoY -3.3%)Operating profit¥575 million (YoY -19.1%)
- Chugoku and ShikokuNet Sales¥8,166 million (YoY +9.9%)Operating profit¥29 million (YoY -27.2%)
- Kansai and ChukyoNet Sales¥12,719 million (YoY -1.8%)Operating profit¥292 million (YoY +368.2%)
- Kanto and TohokuNet Sales¥14,168 million (YoY -1.5%)Operating profit¥240 million (YoY -37.9%)
Annual Dividend
¥69 per share
Interim34
End of period35
Payout ratio
41.1 %
Dividend PolicyThe higher of a 30% payout ratio or a minimum annual dividend of ¥69
| Item | Details |
|---|---|
| Document type | Earnings presentation |
| Fiscal Period Covered | First quarter of the fiscal year ending March 2027 |
| Net Sales | ¥61,559 million (YoY -1.0%) |
| Operating profit | ¥1,111 million (YoY -8.1%) |
| Ordinary income | ¥1,384 million (YoY +11.4%) |
| Net income | ¥877 million (YoY +9.0%) |
| Gross Profit Margin | 11.3 % |
| Selling, general and administrative expenses | ¥5,872 million |
| Results for the three months of the current quarter | Net Sales ¥61,559 million / Operating profit ¥1,111 million / Ordinary income ¥1,384 million / Net income attributable to owners of the parent ¥877 million |
| Full-year earnings forecast | Net Sales ¥274,600 million / Operating profit ¥6,300 million / Ordinary income ¥6,200 million / Net income attributable to owners of the parent ¥4,100 million |
| Progress against full-year forecast | Net Sales 22.4% / Operating profit 17.6% / Ordinary income 22.3% / Net income attributable to owners of the parent 21.4% / By segment Kyushu and Okinawa: net sales 20.5%, operating profit 16.7%; Chugoku and Shikoku: net sales 20.2%, operating profit 9.4%; Kansai and Chukyo: net sales 21.6%, operating profit 36.0%; Kanto and Tohoku: net sales 25.5%, operating profit 11.2% / By product type Flat products: net sales 24.1%, sales volume 24.8%, gross profit 24.9%; long products: net sales 24.4%, sales volume 25.2%, gross profit 27.6%; round steel products: net sales 22.9%, sales volume 22.7%, gross profit 24.1%; steel business: net sales 24.0%, sales volume 24.6%, gross profit 26.1%; construction equipment products: net sales 17.0%, gross profit 17.0%; construction equipment projects: net sales 20.7%, gross profit 21.2%; other businesses: revenue 28.4%, gross profit 26.5%; consolidated net sales 22.4%, gross profit 23.6% |
| Self-assessment against the plan | In the Kyushu and Okinawa and Kanto and Tohoku areas, earnings remained weak relative to plan due to delays in construction projects and the impact of costs being incurred ahead of revenue. |
| Segment results | Segment Kyushu and Okinawa / Net Sales ¥26,504 million (YoY -3.3%) / Operating profit ¥575 million (YoY -19.1%), Segment Chugoku and Shikoku / Net Sales ¥8,166 million (YoY +9.9%) / Operating profit ¥29 million (YoY -27.2%), Segment Kansai and Chukyo / Net Sales ¥12,719 million (YoY -1.8%) / Operating profit ¥292 million (YoY +368.2%), Segment Kanto and Tohoku / Net Sales ¥14,168 million (YoY -1.5%) / Operating profit ¥240 million (YoY -37.9%) |
| Breakdown of Factors Affecting the Change | Year-on-year operating profit Steel price factors 630 / Steel volume factors 199 / Building materials and other factors -290 / Selling, general and administrative expense factor -636 / Quarter-on-quarter operating profit Steel price factors 295 / Steel volume factors 53 / Building materials and other factors -364 / Selling, general and administrative expense factor -385 |
| Key KPIs | Indicator name Steel business sales volume / Value 420 thousand tonnes / Year on year against the same period last year 5.8 thousand tonnes, Indicator name Steel business selling price / Value 115.24 Yen/kg / Year on year against the same period last year -1.2 Yen/kg, Indicator name Flat product sales volume / Value 191 thousand tonnes / Year on year against the same period last year 3.8 thousand tonnes, Indicator name Long product sales volume / Value 153 thousand tonnes / Year on year against the same period last year 7.7 thousand tonnes, Indicator name Round steel product sales volume / Value 75 thousand tonnes / Year on year against the same period last year 8.7 thousand tonnes |
| Unit price and quantity metrics | Category Steel plates / Sales volume 191 thousand tonnes / Selling price ¥106.94/kg, Category Bar steel products / Sales volume 153 thousand tonnes / Selling price ¥131.45/kg, Category Round steel products / Sales volume 75 thousand tonnes / Selling price ¥103.25/kg, Category Steel business subtotal / Sales volume 420 thousand tonnes / Selling price ¥115.24/kg |
| Assumptions Underlying the Business Outlook | The impact of the Kumamoto earthquake cannot reasonably be calculated at this time. Demand for steel products may increase as reconstruction and recovery projects proceed, but the timing and scale of such demand remain unclear. |
| Annual Dividend | ¥69 per share |
| Payout ratio | 41.1 % |
| New initiatives | Acquisition of shares in 三友鋼材株式会社, Strengthening inventory at each location, Enhancement of processing equipment, Strengthening the Delivery System, Supporting recovery and reconstruction in disaster-affected areas and restoring normal business operations as soon as possible |
Items this document does not state (11)
Operating profit marginNumber of stores and locationsNumber of employeesRisk amount incorporated into the outlookMedium-term management plan targetsFinancial targetsAcquisition of treasury sharesCapital expendituresOrders received and order backlogMarket Size / ShareKey points of the Q&A
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.In the steel business, higher sales volumes and improved spreads resulting from price increases led by domestic manufacturers contributed to higher revenue and profit. In the construction business, delays in the progress of projects already secured, lower margins due to rising construction costs, and higher selling, general and administrative expenses, including freight and labor costs, contributed to lower revenue and profit. Ordinary profit and net income benefited from gains on the sale of marketable securities, including certain cross-held shares.
How to read this page
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