NIPPON COKE & ENGINEERING COMPANY,LIMITED reported net sales of ¥20.2 billion for the first quarter of the fiscal year ending March 2027, down 16.7% year on year, while its operating loss narrowed to ¥263 million. Operations have stabilized following the completion of construction to optimize its coke production system, and earnings are expected to improve going forward.
Consolidated net sales for the first quarter of the fiscal year ending March 2027 were ¥20.2 billion, down 16.7% year on year, while the operating loss was ¥263 million. The company posted a loss of ¥740 million in the same period of the previous year, so the loss narrowed.
By business segment, the coke business remained the core source of sales. The comprehensive engineering business posted higher sales and earnings, supported by strong orders for tea-leaf pulverizers used for products such as matcha. Meanwhile, the fuel and resource recycling business reported lower earnings due to a decline in sales volumes resulting from customers shifting their businesses.
On the balance sheet, total assets rose ¥1.741 billion from the end of the previous fiscal year to ¥128.3 billion. Merchandise and finished goods increased 31.8% to ¥13.8 billion, while cash and deposits declined 11.2% to ¥5.7 billion. Net assets fell 2.2% from the end of the previous fiscal year to ¥34.0 billion, and the equity ratio declined to 26.5%.
Based on the results for the first quarter, the company expects full-year net sales of ¥101.6 billion, operating income of ¥3.6 billion, ordinary income of ¥2.0 billion and net income of ¥500 million. For the cumulative second quarter, it forecasts net sales of ¥45.8 billion and operating income of ¥800 million, with optimization of the coke business's production system expected to contribute. The dividend remains undecided, and the annual dividend for the previous fiscal year was ¥0.