TOW lowered its ordinary profit forecast for the current fiscal year. The full-year forecast was cut from ¥2.2 billion to ¥1.71 billion and the first-half forecast from ¥1.35 billion to ¥860 million, while first-quarter ordinary profit came to ¥270 million, down 23.8% year on year.
TOW announced its earnings during the afternoon session on 13 November and lowered its ordinary profit forecast for the current fiscal year from its previous forecast. Cumulative ordinary profit for the first quarter was ¥270 million, down 23.8% year on year.
The full-year ordinary profit forecast was also revised from ¥2.2 billion to ¥1.71 billion. The actual result for the same period of the previous year was ¥2.03 billion, representing a 22.2% downward revision. In addition, the first-half ordinary profit forecast was revised from the previous forecast of ¥1.35 billion to ¥860 million, resulting in a forecast of a 29.6% decline in profit, contrary to the previous expectation of an increase.
Based on results for the most recent three months, the operating margin on sales deteriorated from 7.8% in the same period of the previous year to 5.8%. As progress toward the first-half and full-year forecasts has slowed, this could affect profit levels in the near term.