S.T. Corporation cut its ordinary profit outlook for the current fiscal year, now forecasting a 34% decline. Ordinary profit for the cumulative second quarter fell 46.9% year on year to ¥1.05 billion.
S.T. Corporation announced on 11 November that consolidated ordinary profit for the cumulative second quarter of the fiscal year ending March 2027 (April-September) was ¥1.05 billion, down 46.9% year on year and below the previous forecast of ¥1.6 billion. As a result, the full-year ordinary profit outlook was revised down 40.7%, from ¥2.7 billion to ¥1.6 billion, resulting in a forecast for a 33.8% decline. Meanwhile, the full-year consolidated net profit outlook was revised up from the previous forecast of ¥1.8 billion to ¥2 billion, with profit growth from the previous fiscal year now expected.
For the most recent three-month period, consolidated ordinary profit for July-September was ¥940 million, down 32.5% year on year, while the operating margin on sales fell sharply from 10.6% to 6.3%.
The company cited the failure of new and existing core air-care products to meet their sales targets, declines in existing clothing-care products, and higher raw material costs as factors behind the revisions to its second-quarter results and full-year outlook. Some impact from the situation in the Middle East was also cited.
For the second half, the company presented a plan based on an estimate that consolidated ordinary profit for October-March will increase 27.8% year on year to ¥540 million.