Tokyo Steel revises full-year financial forecasts downward

Tokyo Steel Manufacturing has announced a revision to its non-consolidated financial results forecast for the fiscal year ending March 31, 2026. Net sales are now revised to 264,300 million yen from a previously announced 293,500 million yen, a decrease of 29,200 million yen or 9.9%. Operating profit is revised down from 16,100 million yen to 9,500 million yen, a drop of 41.0%. Ordinary profit also saw a reduction from 17,200 million yen to 10,500 million yen, a 39.0% decrease. Net income is revised to 10,000 million yen from 11,000 million yen, a decrease of 9.1%. Consequently, profit per share is adjusted from 107.31 yen to 97.54 yen.

The company attributes these revisions to several factors, including lower-than-expected product shipment volumes in the July-September quarter due to reduced construction capacity from labor shortages in Japan. Increased fixed costs resulting from lower production volumes also contributed to profits falling below plan. Looking ahead, Tokyo Steel notes that while the tariff issue on automobiles with the United States has been resolved, uncertainty persists in the domestic manufacturing sector, and rising scrap iron prices due to the weak yen are expected to pressure earnings.

Tokyo Steel plans to implement a profitability-focused policy, concentrating on restoring selling prices and pursuing cost reductions, including reviewing raw material unit consumption. The revised forecast also considers the expected recognition of gains from asset sales.