Showa Sangyo cut its current-year ordinary-income forecast by 14%, from the previous ¥14.0 billion to ¥12.0 billion. It disclosed first-half results and its second-half outlook, with net income expected to be revised upward.
In its earnings announcement after the close on 9 November, Showa Sangyo disclosed that it had revised down its consolidated ordinary-income forecast for the current fiscal year from the previous ¥14.0 billion to ¥12.0 billion. As a result, the full-year net income forecast was revised upward from ¥9.5 billion to ¥11.5 billion, while the ordinary-income forecast was revised downward. Revenue remains at the previously disclosed level.
Cumulative second-quarter consolidated ordinary income for April–September was ¥6.45 billion, down 11.3% year on year, while the operating margin for the period deteriorated from 3.1% to 2.0%. Based on first-half results and the full-year forecast, ordinary income for the second half is expected to fall to ¥5.54 billion.
The earnings summary states that the sale of part of the company's investment securities resulted in the recognition of extraordinary income, and that forecast net income attributable to owners of the parent is therefore expected to exceed the previous forecast. It also notes that uncertainty related to international conditions and rising prices and costs may persist.
The separate table for the current fiscal year presents second-quarter results together with the second-half forecast. Revenue in the second half is expected to be broadly flat to slightly higher year on year, while the revised earnings-per-share forecast has been presented to the market in light of changes to company policy.