Consolidated financial results for the first quarter of the fiscal year ending February 2027, damage caused by the minor fire at the Sakura Plant, and transfer of fixed assets
TOKYO BOARD INDUSTRIES CO.,LTD. (the Company) and its group companies
The manufacturing line at the Sakura Plant, the head office area in Shinkiba, Koto-ku, Tokyo, and the former particleboard manufacturing plant (land, buildings and other assets). There will be no change in the operations of the RC (recycling) plant, Sakura Plant, Saitama Plant or any group company as a result of the transfer of fixed assets.
Production at the Sakura Plant was stopped following a minor fire. The Company cited uncertainty regarding the impact of the unstable international situation on costs and demand prospects after operations resumed, among other factors, as reasons why it was difficult to formulate an earnings forecast. The fixed assets were transferred to make more efficient use of assets through the effective utilization of management resources and to strengthen the Company's financial position.
For the first quarter of the fiscal year ending February 2027, the Company recorded a disaster-related loss of ¥351.912 million as an extraordinary loss and insurance proceeds of ¥309.921 million. Insurance proceeds of ¥316.921 million were recorded under extraordinary income in the consolidated quarterly statement of income. The gain on the sale of fixed assets is approximately ¥4,250 million (estimated amount).
The disaster-related loss and insurance income were recorded in the cumulative consolidated period for the first quarter of the fiscal year ending February 2027. The gain on the sale of fixed assets is scheduled to be recorded as an extraordinary gain in the consolidated accounting period for the second quarter of the fiscal year ending February 2027.
The latest previously published earnings forecast has been revised. For the full fiscal year ending February 2027, net sales are forecast at ¥6,148 million, operating loss at ¥428 million, ordinary loss at ¥589 million, and net income attributable to owners of the parent at ¥3,573 million. The Company has newly formulated a consolidated earnings forecast, which had previously been undetermined.
Company response
Production at the Sakura Plant. Production was stopped after the minor fire on 1 November 2025 and resumed on 10 June 2026.
Production resumed on 10 June 2026.
Review of manufacturing process controls, human resources development, stronger coordination between departments and group companies, promotion of the development of a circular society, safety initiatives, enhancement of employee motivation and capabilities and work-style reform, improvements in productivity and the earnings structure, and securing and developing personnel engaged in research and development.
The Company will work to strengthen its earnings capacity after production resumes and establish a framework for implementing measures to prevent recurrence. It will promote initiatives relating to the development of a circular society, safety, human resources, productivity and the earnings structure, and research and development, while seeking to improve cash flow and strengthen its financial position through coordination with business partners and discussions with financial institutions. After the transfer of the fixed assets, the Company will continue to use the head office under a lease agreement with the transferee, and there will be no closure or relocation of its offices.
| Item | Details |
|---|---|
| Event name | Consolidated financial results for the first quarter of the fiscal year ending February 2027, damage caused by the minor fire at the Sakura Plant, and transfer of fixed assets |
| Date of occurrence | 1 November 2025 (date of the minor fire at the Sakura Plant), 26 June 2026 (date of the Board of Directors' resolution and contract execution for the transfer of fixed assets), and 30 June 2026 (date of delivery of the subject real estate) |
| Subject Entity | TOKYO BOARD INDUSTRIES CO.,LTD. (the Company) and its group companies |
| Target Locations / Products | The manufacturing line at the Sakura Plant, the head office area in Shinkiba, Koto-ku, Tokyo, and the former particleboard manufacturing plant (land, buildings and other assets). There will be no change in the operations of the RC (recycling) plant, Sakura Plant, Saitama Plant or any group company as a result of the transfer of fixed assets. |
| Cause | Production at the Sakura Plant was stopped following a minor fire. The Company cited uncertainty regarding the impact of the unstable international situation on costs and demand prospects after operations resumed, among other factors, as reasons why it was difficult to formulate an earnings forecast. The fixed assets were transferred to make more efficient use of assets through the effective utilization of management resources and to strengthen the Company's financial position. |
| Amount of Impact on Business Performance | For the first quarter of the fiscal year ending February 2027, the Company recorded a disaster-related loss of ¥351.912 million as an extraordinary loss and insurance proceeds of ¥309.921 million. Insurance proceeds of ¥316.921 million were recorded under extraordinary income in the consolidated quarterly statement of income. The gain on the sale of fixed assets is approximately ¥4,250 million (estimated amount). |
| Accounting period in which recognized | The disaster-related loss and insurance income were recorded in the cumulative consolidated period for the first quarter of the fiscal year ending February 2027. The gain on the sale of fixed assets is scheduled to be recorded as an extraordinary gain in the consolidated accounting period for the second quarter of the fiscal year ending February 2027. |
| Impact on Earnings Forecast | The latest previously published earnings forecast has been revised. For the full fiscal year ending February 2027, net sales are forecast at ¥6,148 million, operating loss at ¥428 million, ordinary loss at ¥589 million, and net income attributable to owners of the parent at ¥3,573 million. The Company has newly formulated a consolidated earnings forecast, which had previously been undetermined. |
| Suspended operations | Production at the Sakura Plant. Production was stopped after the minor fire on 1 November 2025 and resumed on 10 June 2026. |
| Scheduled resumption date | Production resumed on 10 June 2026. |
| Measures to prevent recurrence | Review of manufacturing process controls, human resources development, stronger coordination between departments and group companies, promotion of the development of a circular society, safety initiatives, enhancement of employee motivation and capabilities and work-style reform, improvements in productivity and the earnings structure, and securing and developing personnel engaged in research and development. |
| Outlook | The Company will work to strengthen its earnings capacity after production resumes and establish a framework for implementing measures to prevent recurrence. It will promote initiatives relating to the development of a circular society, safety, human resources, productivity and the earnings structure, and research and development, while seeking to improve cash flow and strengthen its financial position through coordination with business partners and discussions with financial institutions. After the transfer of the fixed assets, the Company will continue to use the head office under a lease agreement with the transferee, and there will be no closure or relocation of its offices. |
Items this document does not state (13)
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 Company cited the production stoppage following a minor fire on 1 November 2025 on the manufacturing line at the Sakura Plant, difficult conditions in the housing market, the impact of the unstable international situation on costs, and uncertainty regarding demand prospects after operations resumed as reasons for the deterioration in earnings. The fixed assets were transferred to make more efficient use of assets through the effective utilization of management resources and to strengthen the Company's financial position.