JTEKT Cuts Operating Profit Forecast by 60% — European Auto Business Divestiture Costs Hit
JTEKT Corporation (TSE:64730) revised its FY2026 (ending March 2026) earnings forecast under IFRS, sharply cutting operating profit and net profit due to losses associated with the planned divestiture of its European automotive business.
| Item | Before | After | Change |
|---|---|---|---|
| Revenue | JPY 1,880.0bn | JPY 1,880.0bn | — |
| Business Profit | JPY 65.0bn | JPY 68.0bn | +JPY 3.0bn (+4.6%) |
| Operating Profit | JPY 55.0bn | JPY 22.0bn | △JPY 33.0bn (△60.0%) |
| Pre-tax Profit | JPY 55.0bn | JPY 22.0bn | △JPY 33.0bn (△60.0%) |
| Net Profit | JPY 25.0bn | JPY 10.0bn | △JPY 15.0bn (△60.0%) |
| EPS | JPY 78.54 | JPY 31.41 | △JPY 47.13 (△60.0%) |
The company expects to book a JPY 24.4bn loss in its consolidated accounts from the sale of seven European subsidiaries engaged in automotive parts manufacturing. An additional JPY 28.6bn allowance for doubtful accounts will be recorded at the individual (non-consolidated) level against loans to the European units.
While underlying business profit (IFRS equivalent of operating profit before special items) actually improved to JPY 68.0bn (+4.6%), the divestiture-related restructuring charges dominate the headline numbers. The revision is a one-time structural cost, not a sign of deteriorating core business performance.
Source: Original filing (TDnet) | 日本語版
This article is for informational purposes only and does not constitute investment advice. Always verify against the original filing.