Tokyo Steel slashes full-year forecast amid challenging market

Tokyo Steel Manufacturing announced a downward revision to its full-year non-consolidated financial results forecast for the fiscal year ending March 31, 2026. The company now expects net sales of 264,300 million yen, a 9.9% decrease from the previous forecast. Operating profit is projected to fall by 41.0% to 9,500 million yen, while ordinary profit is expected to decline by 39.0% to 10,500 million yen. Net income is revised down by 9.1% to 10,000 million yen, resulting in 97.54 yen per share.

This revision follows a challenging July-September quarter where product shipment volumes underperformed due to reduced construction capacity stemming from labor shortages in the domestic sector. Increased fixed costs linked to lower production volumes also impacted period profits, which fell below planned levels.

Looking ahead, the company anticipates continued market uncertainty, particularly in the domestic manufacturing sector, and concerns about rising scrap iron prices exacerbated by a weak yen. Tokyo Steel will maintain its focus on profitability, aiming to restore selling prices and implementing cost reduction measures, including a review of raw material unit consumption.