Tosoh revises full-year forecast downward on weak demand, lower prices

Tosoh Corporation announced a revision to its consolidated financial forecast for the fiscal year ending March 31, 2026, projecting a decrease in revenue and profits. The revised forecast for net sales is JPY 1,020,000 million (down JPY 30,000 million from the previous forecast), operating profit is JPY 103,000 million (down JPY 5,000 million), and net income attributable to owners of the parent is JPY 38,000 million (down JPY 24,000 million), leading to a revised EPS of JPY 119.53. This adjustment is primarily attributed to sluggish demand for chlor-alkali and petrochemical products, lower overseas market prices, and adverse terms of trade due to rising naphtha prices, despite a weaker yen.

Additionally, the company reported a JPY 19,094 million impairment loss on fixed assets in the functional products segment for the interim period, impacting net income. Despite these challenges, Tosoh maintains its annual dividend forecast at JPY 100 per share and continues with its share buyback program, targeting up to JPY 25,000 million.

The company's second-quarter results (April 1 to September 30, 2025) showed consolidated net sales of JPY 499,139 million and operating profit of JPY 44,742 million, with net income attributable to owners of the parent at JPY 7,377 million, significantly below the previous year due to the aforementioned impairment and market conditions.