Sumitomo Electric Industries reported a substantial year-on-year increase in revenue and a substantial increase in operating profit for the first quarter of the fiscal year ending March 2027. While its core automotive-related business continued to support revenue, its 1Q operating profit declined year on year, indicating a shift in the structure of its main earnings driver.
In its consolidated results for April-June 2026, Sumitomo Electric Industries reported revenue of ¥1.33059 trillion, operating profit of ¥97.059 billion, ordinary profit of ¥103.039 billion, and quarterly net profit of ¥66.414 billion, achieving substantial year-on-year increases in both revenue and profit across all measures. Despite the effects of yen depreciation and higher copper prices, the company absorbed some revenue declines and cost increases stemming from the situation in the Middle East more effectively than expected.
The automotive-related business generated revenue of ¥802.8 billion, an increase from the same period of the previous year. However, although group company Sumitomo Riko maintained solid shipment volumes, its operating profit fell year on year to ¥26.026 billion. Higher copper procurement prices and the situation in the Middle East weighed on profit. Demand in other segments, including information and communications and industrial materials, remained solid.
The company revised its full-year consolidated earnings outlook upward, raising its forecasts to ¥5.4 trillion in revenue, ¥450 billion in operating profit, ¥460 billion in ordinary profit, and ¥340 billion in net profit. Yen depreciation and higher copper prices contributed as external factors, while the impact of the situation in the Middle East and some ongoing cost increases remain concerns.