Nankai Plywood revises earnings forecast amid European challenges

Nankai Plywood (TSE:7887) has revised its consolidated earnings forecast for the fiscal year ending March 31, 2025, due to a mix of domestic gains and challenges in its European operations. While domestic sales slightly declined amid a drop in new housing starts, cost reduction efforts and market development for storage products led to increased operating profit. Furthermore, positive currency exchange rates boosted recurring profit expectations. However, the company anticipates a net loss attributable to owners of the parent company, now forecast at JPY101 million, due to a significant impairment loss of JPY642 million at its French subsidiary, NP ROLPIN SAS, stemming from underutilized capacity amid European economic stagnation.