Sumitomo Osaka Cement revises full-year outlook after mixed interim results

Sumitomo Osaka Cement announced a disparity between its second-quarter (interim) earnings forecast and actual results for the fiscal year ending March 2026, leading to a revised full-year earnings forecast. For the second quarter, actual consolidated net sales were JPY105,772 million, JPY5,627 million below the forecast. Operating profit was JPY4,119 million, JPY680 million lower than forecast, primarily due to decreased domestic cement sales volume and delayed impact of price hikes. However, ordinary profit of JPY4,233 million and profit attributable to owners of the parent of JPY5,590 million exceeded forecasts, driven by extraordinary income and gains from cross-shareholding sales.

The full-year consolidated forecast for fiscal year 2026 has been revised downward, with net sales now projected at JPY225,200 million (down JPY9,800 million) and operating profit at JPY14,000 million (down JPY5,000 million). This revision is attributed to the anticipated decline in domestic cement sales volume and the delayed realization of price hike impacts. Profit attributable to owners of the parent is now forecast at JPY10,000 million (down JPY4,000 million), while the dividend per share remains unchanged at JPY120.

The Cement business, despite improvements in profitability due to lower coal prices and price hikes, saw revenue and operating profit fall short of initial forecasts. This was due to lower domestic sales volume, higher manufacturing fixed costs, and the delayed impact of price increases. The Advanced Materials business experienced higher operating profit year-on-year.