Taiheiyo Cement lowers forecast, launches employee stock plan amid demand drop

Taiheiyo Cement Corporation announced a downward revision to its consolidated financial results forecast for the fiscal year ending March 31, 2026. The revised forecast projects net sales of JPY 906,000m (down from JPY 950,000m), operating profit of JPY 70,000m (down from JPY 85,000m), and profit attributable to owners of parent of JPY 45,000m (down from JPY 60,000m). This adjustment is primarily attributed to a decline in demand in the United States and a challenging competitive environment in the Philippines.

In a related move, the company also announced the introduction of a Restricted Stock Incentive Plan for its employees. Under this plan, Taiheiyo Cement will dispose of up to 179,130 shares of its common stock as restricted stock to the Taiheiyo Cement Employee Shareholding Association at a disposal price of JPY 4,084 per share, totaling JPY 731,566,920. The plan aims to enhance employee motivation by aligning their interests with the company's stock performance and business results.

Additionally, the company published its financial results for the six months ended September 30, 2025, reporting net sales of JPY 438,141m and an operating profit of JPY 32,853m. The company is also acquiring ready-mixed concrete business assets from Vulcan Materials Company in California for $712m, expanding its U.S. operations and strengthening its supply chain.