CHUO SPRING CO.,LTD.'s official disclosure of its financial results for the second quarter of the fiscal year ending March 2027. Revenue rose 4.1% year on year to ¥56.25 billion, but operating profit fell 74.0% to ¥388 million, ordinary profit fell 64.2% to ¥700 million, and profit attributable to owners of the parent for the interim period fell 42.0% to ¥776 million. The company indicated that a downward revision was expected.
Revenue rose 4.1% year on year, supported by firm domestic demand and the effects of the weaker yen, while profit was significantly squeezed by upfront investment, production cuts in China, and tariffs and materials inflation in North America. The North American segment swung to a loss, and overall profit levels fell sharply.
The reported segments comprise Japan, North America, China and Asia. Domestic demand remained firm, but the economic slowdown in China and intensifying competition with local OEMs restrained revenue growth. The weaker yen also contributed to overseas revenue.
On the balance sheet, total assets decreased from ¥154.9 billion at the previous fiscal year-end to ¥148.4 billion, mainly due to a decrease in cash and deposits. Net assets stood at ¥92.16 billion, and the equity ratio rose from 56.6% to 59.0%.
Operating activities generated cash outflows, investing outflows contracted, and financing outflows increased. Cash and cash equivalents at the end of the interim period increased from ¥20.05 billion to ¥22.72 billion.
The full-year outlook for the current fiscal year was revised downward. Revenue is projected to fall 0.8% from the previous fiscal year to ¥110.0 billion, operating profit to fall 36.8% to ¥1.8 billion, ordinary profit to fall 48.8% to ¥2.3 billion, and profit attributable to owners of the parent to fall 85.9% to ¥1.75 billion. The annual dividend is expected to remain at ¥90.