Godo Steel cuts full-year forecast, slashes dividend amid weak demand

Godo Steel, Ltd. has revised its consolidated financial results forecast for the fiscal year ending March 31, 2026, downward. Net sales are now projected at JPY 195,000 million, a JPY 5,000 million reduction from the previous JPY 200,000 million forecast. Operating profit is revised to JPY 10,500 million from JPY 12,500 million, ordinary profit to JPY 12,000 million from JPY 14,000 million, and profit attributable to owners of parent to JPY 8,500 million from JPY 9,500 million. This revision reflects lower-than-expected first-half sales and a narrowing of metal spreads due to increased steel scrap prices and higher overall costs.

In line with the revised financial outlook, the year-end dividend forecast has been cut by JPY 20 per share, from JPY 100 to JPY 80. Consequently, the total annual dividend for the fiscal year ending March 31, 2026, is now forecast at JPY 180 per share, down from the previously announced JPY 200. The company targets a consolidated annual dividend payout ratio of approximately 30% as a guideline for profit distribution, considering financial soundness and investment needs.