東海染工 cut its ordinary profit forecast for the current fiscal year by 46.2%. Its earnings outlook for the interim period was also sharply lowered.
東海染工 cut its consolidated ordinary profit forecast for the current fiscal year from ¥650 million to ¥350 million in the afternoon session on 23 October. Ordinary profit was ¥310 million in the same period of the previous year. As a result, earnings growth for the current fiscal year is now expected to narrow from the 2.1-times level in the previous forecast to 12.9%.
The company also cut its first-half ordinary profit forecast from ¥180 million to ¥60 million, and now expects a 34.1% year-on-year decline from ¥91 million in the same period of the previous year. The outlook for the interim period has deteriorated significantly.
The reasons for the revision include lower revenue in the domestic dyeing and finishing business due to fewer uniform orders from private-sector and government demand, while overseas, persistently high raw material prices and rising energy costs pushed up costs. The company expects the impact of high prices and elevated raw material costs to continue.