Kyoei Steel sharply revised down its ordinary profit forecast for the current fiscal year, lowering its full-year forecast from ¥14.0 billion to ¥9.0 billion. 2Q cumulative ordinary profit was ¥5.92 billion, down 30.1% year on year, while ordinary profit for July-September was ¥2.52 billion, down 42.9% year on year.
In its earnings announcement on 30 October, Kyoei Steel revised its consolidated ordinary profit forecast for the current fiscal year from the previous forecast of ¥14.0 billion to ¥9.0 billion. The revised forecast implies a 44.5% year-on-year decline, while second-half ordinary profit was calculated at ¥3.07 billion.
Ordinary profit for the first six months was ¥5.92 billion, down 30.1% year on year, and the operating margin on sales deteriorated from 6.1% to 3.0%.
Compared with the previous forecast, the revision rate based on first-half results was -1.2%, with only minor revisions to net sales, operating profit, ordinary profit, net profit and revised EPS.
Based on the outlook for the remainder of the current fiscal year, second-half ordinary profit is expected to fall sharply to ¥3.07 billion, down 60.3% year on year.