Aichi Steel raises full-year forecast and dividend on strong interim results

Aichi Steel Corporation announced an upward revision to its full-year earnings forecast for the fiscal year ending March 2026, projecting consolidated operating profit of JPY 15 billion and net profit of JPY 10 billion. This follows a strong interim performance, with consolidated revenue reaching JPY 149.8 billion and operating profit soaring to JPY 8.7 billion, representing a 166% increase year-on-year and a 45% increase from previous figures. The company also reported record-high revenue and operating profit for the interim period.

The significant increase in interim operating profit was primarily attributed to a JPY 5.4 billion improvement year-on-year, driven by increased sales volumes, particularly in specialty steel and forged products, and a favorable impact from lower raw material and purchased goods prices. Factory cost reductions and positive contributions from subsidiaries also played a role.

Reflecting the improved outlook, Aichi Steel plans to increase its full-year ordinary dividend to JPY 62 per share, up from the previously announced JPY 58. Combined with a special dividend, the total projected full-year dividend is JPY 138 per share. The company aims to achieve its 2024-2026 mid-term plan targets of JPY 15 billion operating profit and 4% ROE ahead of schedule.