FUKOKU reported first-quarter operating profit of ¥1,515 million, up approximately 51% year on year, while sales came to ¥23,358 million. For the full-year plan, it expects sales of ¥85,000 million and operating profit of ¥3,300 million for the fiscal year ending March 2027, and also announced an increase in its dividend policy.
Independent rubber component manufacturer FUKOKU announced its first-quarter results, reporting sales of ¥23,358 million and operating profit of ¥1,515 million. Sales rose 2.8% year on year and operating profit increased 51.4%, while the operating margin improved to 6.6%. The company attributed this to progress in its functional-products-focused business and the effects of cost reductions.
For the full-year plan, the company expects sales of ¥85,000 million and operating profit of ¥3,300 million for the fiscal year ending March 2027, and said it will proceed with the plan while assessing market trends in the first half. It also expects to continue measures to improve profit while taking into account the impact of the situation in the Middle East.
As part of its growth strategy, the company said it will strengthen the development of the life sciences, semiconductor-related, Indian and US markets, while anticipating a delay in EV-related demand. It aims to strengthen its long-term earnings base by increasing the proportion of high-value-added products through expanded sales of thermal management materials for EVs and new product lines, market expansion in ASEAN, and the application of vibration-damping technology in the space sector.
For shareholder returns, the company will raise its consolidated dividend payout ratio from 30% to 40% and newly establish a ¥50 annual dividend floor. It plans to pay an annual dividend of ¥100 for the fiscal year ending March 2027, up ¥15 from the previous fiscal year.