Kitagawa Iron Works announced a substantial upward revision to its ordinary profit forecast for the current fiscal year and a significant increase in its dividend. Under the new outlook, ordinary profit is expected to be ¥4.6 billion and the annual dividend ¥110 per share.
Kitagawa Iron Works announced revisions to its earnings and dividend forecasts after the market close on 11 September. Consolidated ordinary profit for the fiscal year ending March 2027 was revised upward from the previous forecast of ¥3 billion to ¥4.6 billion, or 53.3%, with the expected profit growth rate expanding significantly from the previous forecast. First-half ordinary profit was also revised upward from the previous forecast of ¥1.6 billion to ¥2.7 billion, or 68.8%, and is expected to improve substantially from the same period of the previous year.
The dividend was revised accordingly, with the first-half dividend increased from ¥32 to ¥50 and the second-half dividend from ¥32 to ¥60, resulting in an annual dividend of ¥110. Factors contributing to the profit increase include differences in the timing of revenue recognition, the completion of large projects and a recovery in market conditions. Although some business segments, including metal forming materials, are expected to post lower profit, overall profit is expected to increase.
The earnings forecast revisions cover both the first half and the full year. The new first-half forecast is revenue of ¥34,000 million, ordinary profit of ¥2,700 million, net profit of ¥2,100 million and a revised dividend of ¥50 per share. The new full-year forecast is revenue of ¥65,700 million, ordinary profit of ¥4,600 million, net profit of ¥3,400 million and a revised dividend of ¥110 per share.