The company stated that it expects post-tax net profit for the fiscal year ending March 2026 to reach around JPY 10 billion, down 52.8% year-on-year.
This figure is below the previously announced forecast of JPY 11 billion (a 48.1% decrease) and about 3.5% lower than the average analyst estimate of JPY 10.36 billion.
Tokyo Steel also lowered its operating and ordinary profit forecasts.
Operating profit was reduced by 41% from the previous forecast to JPY 9.5 billion, representing a 68.4% decrease year-on-year.
Ordinary profit is updated to JPY 10.5 billion, down 66.8%.
Sales revenue forecast was also cut by 19.1% to JPY 264.3 billion (previous forecast: JPY 293.5 billion).
According to market research firm QUICK Consensus, analysts had expected operating profit of JPY 14.7 billion, ordinary profit of JPY 15.8 billion, and sales of JPY 277.2 billion on average.
The company attributed this downward revision in expectations to weak construction demand, rising energy costs, and fluctuations in scrap prices.
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