Chuo Spring, which manufactures automotive springs and precision components, revised down its consolidated earnings forecast for the fiscal year ending March 2027. Production cuts in China are believed to have exceeded expectations, prompting the revision.
Chuo Spring lowered its consolidated operating profit forecast for the fiscal year ending March 2027 from the previous ¥3.3 billion to ¥1.8 billion. Operating profit is expected to decline sharply from the previous fiscal year.
Production cuts in China are cited as the main factor. Profit is also being squeezed by the impact of North American tariffs, delays in passing on inflation-related cost increases, and upfront investment in fixed costs to support future growth.
Operating profit for the six months through the second quarter is expected to come to ¥388 million, a decline of 74.0% year on year. The difficult earnings environment has become clear.