Tosoh revises forecasts, sees significant impairment loss from US unit

Tosoh Corporation anticipates an impairment loss of JPY 19.1 billion on fixed assets of its U.S. subsidiary, Tosoh SMD, Inc. (TSMD), due to a downturn in the U.S. semiconductor market and sluggish demand. Additionally, a JPY 9.6 billion loss on valuation of shares of subsidiaries and associates will be recognized in non-consolidated financial statements, stemming from TSMD's deteriorating business performance.

The company has revised its consolidated financial results forecast for the six months ending September 30, 2025. Net sales are now projected at JPY 499,000 million, down from JPY 510,000 million, while ordinary income is revised up to JPY 45,000 million from JPY 39,000 million. However, net income attributable to owners of parent is significantly reduced to JPY 7,000 million from JPY 22,000 million, largely due to the impairment loss.

Despite factors like a weaker yen and increased sales in the Engineering Group, overall sales are expected to fall short of previous projections due to lower-than-expected sales volumes and challenging overseas market conditions for certain products. Operating and ordinary income forecasts improved due to increased Engineering Group sales, better terms of trade for the Speciality Group, and improved foreign exchange gains.