Osaka Steel revises interim forecast amid challenging market conditions

Osaka Steel Co., Ltd. reported a significant variance between its consolidated financial forecasts and actual results for the second quarter (interim) of the fiscal year ending March 2026. The company's net sales for the period were 48,641 million yen, falling short of the 50,000 million yen forecast. Operating profit, previously projected at a loss of 1,000 million yen, improved to a loss of 170 million yen, while ordinary profit, forecast at a loss of 2,500 million yen, came in at a loss of 1,324 million yen. Net income attributable to owners of parent was a loss of 1,550 million yen, compared to a forecast loss of 2,300 million yen, resulting in a loss per share of 51.81 yen.

The company attributed these differences to delays in the recovery of construction demand, higher raw material prices, and labor shortages. Despite these challenges, cost improvements and favorable foreign exchange gains positively impacted the results against the original forecast. Looking ahead, Osaka Steel forecasts full-year consolidated net sales of 105,000 million yen and projects an ordinary profit of 0 million yen, maintaining its full-year outlook as the foreign exchange gains are expected to reverse in the second half.

The company also announced no dividend for the second quarter of fiscal year 2025, a reduction from the previous year's 15.00 yen. No year-end dividend is expected due to current performance and financial outlook, reflecting a challenging operating environment marked by stagnant steel demand and rising costs.