JMC Corporation revises 2025 earnings forecast down on casting business woes

JMC Corporation has revised its consolidated full-year earnings forecast for the period from January 1, 2025, to December 31, 2025. The company now projects net sales of JPY3,130 million, down from JPY3,300 million. Operating profit is revised to JPY20 million from JPY240 million, and ordinary profit to JPY12 million from JPY230 million. Net income attributable to owners of the parent is now forecast at JPY6 million, a substantial decrease from the initial JPY150 million. This translates to an estimated basic earnings per share of JPY1.08, down from JPY26.88.

The revision is primarily attributed to difficulties in the casting business. Efforts to meet high quality demands for new alloy materials and advanced casting components, coupled with challenges in ensuring stable production for certain new manufacturing projects, led to higher-than-anticipated production costs. While sales for the casting business were revised to JPY2,060 million (down JPY140 million), its operating profit fell to JPY50 million (down JPY190 million). The 3D printer and CT businesses are reportedly performing in line with initial expectations.

In light of these challenges, JMC Corporation will terminate its BtoC business for restore-related parts due to its minimal impact on performance and plans to restructure the business foundation of its casting segment.