島精機製作所 lowered its ordinary income outlook for the current fiscal year from the previous profit forecast to a loss. The cumulative second quarter swung to a loss, and the company indicated that the loss is expected to widen in the second half.
島精機製作所 announced its earnings after the close on 30 October. Consolidated ordinary income for the cumulative second quarter (April-September) of the fiscal year ending March 2027 was a ¥1.94 billion loss, compared with a ¥780 million profit in the same period of the previous year.
It also revised its full-year ordinary income outlook downward from the previous forecast of a ¥1.0 billion profit to a ¥4.3 billion loss, switching to a loss outlook. Based on first-half results and the second-half plan, ordinary income in the second half is expected to be a ¥2.35 billion loss.
In the latest 3 quarters, ordinary income for July-September was a ¥1.44 billion loss, while the operating margin on revenue deteriorated from -5.1% in the same period of the previous year to -18.4%. The company cited intensifying price competition, particularly in Asia, and failure to meet its sales plan as the main factors.