Nakayama Steel Works cut its ordinary profit forecast for the current fiscal year from ¥2.0 billion to ¥1.6 billion. Ordinary profit turned into a loss in the July-September quarter, and the results and outlook for the first half and second half are expected to be materially affected.
Nakayama Steel Works announced that its consolidated ordinary profit and loss for the cumulative second quarter of the fiscal year ending March 2027 (April-September) had turned into a loss of ¥180 million. It had recorded ordinary profit of ¥2.93 billion in the same period a year earlier.
At the same time, it cut its full-year ordinary profit forecast by 20.0%, from the previous ¥2.0 billion to ¥1.6 billion. The previous fiscal year recorded ordinary profit of ¥4.8 billion. The reason for the downward revision is said to be based on the earnings report.
Based on first-half results and the previous forecast, consolidated ordinary profit for the October-March second half is expected to decline 4.9% year on year to ¥1.78 billion. The July-September quarter recorded a loss of ¥790 million, and the operating margin on sales deteriorated to 0.7%.
The revision from the initial forecast is also expected to affect sales and net income, and further disclosure is awaited.