Godo Steel's consolidated ordinary income for the cumulative second quarter (April-September) fell sharply to ¥250 million, a significant year-on-year decline. The company also revised its full-year ordinary income forecast downward from the previous forecast of ¥7.0 billion to ¥2.5 billion.
In its earnings announcement in the afternoon of 30 October, Godo Steel reported that consolidated ordinary income for the cumulative second quarter of the fiscal year ending March 2027 (April-September) had fallen by nearly 90% or more year on year to ¥250 million. The company explained that although it had been profitable in the previous fiscal year, loss factors emerged in the current fiscal year, and the result was below the previous forecast of ¥1.0 billion.
At the same time, it sharply revised its full-year ordinary income forecast downward from the previous forecast of ¥7.0 billion to ¥2.5 billion, with the decline in earnings expected to widen. Based on the first-half results and second-half plan, the company estimates consolidated ordinary income for the October-March period at ¥2.24 billion.
For July-September, consolidated ordinary income was a ¥720 million loss, a sharp deterioration from the ¥2.61 billion profit in the same period of the previous fiscal year. The operating margin on sales also deteriorated sharply from 5.4% in the same period of the previous fiscal year to -1.3%.
The latest downward revision is expected to affect the future earnings outlook, and the company is urging investors to make investment decisions with reference to earnings reports based on publicly available data.