Kyosan Electric Manufacturing Co., Ltd. Revises Earnings Forecast — Revenue Up, Profits Down
Kyosan Electric Manufacturing Co., Ltd. (TSE:6742) has revised its earnings forecast for the fiscal period ending March 31, 2026, citing changes in demand and inventory risks.
| Item | Before | After | Change |
|---|---|---|---|
| Revenue | JPY 86.0bn | JPY 88.9bn | +JPY 2.9bn (+3.4%) |
| Operating Profit | JPY 4.7bn | JPY 2.46bn | △JPY 2.24bn (△47.7%) |
| Ordinary Income | JPY 5.0bn | JPY 3.12bn | △JPY 1.88bn (△37.6%) |
| Net Profit | JPY 3.5bn | JPY 3.32bn | △JPY 0.18bn (△5.1%) |
| EPS | JPY 55.81 | JPY 53.58 | △JPY 2.23 (△4.0%) |
The company attributed the revision to a reassessment of sales plans in its power electronics business, where initial product configurations did not align with customer demand. Additionally, the firm identified a decline in the sales potential of certain components it had procured in advance based on demand forecasts. As a result, Kyosan will record inventory write-downs and impairment charges during the period.
The earnings revision signals potential headwinds for Kyosan’s profitability, particularly in its power electronics segment. Investors should monitor subsequent financial reports and management’s strategies to mitigate inventory risks and adjust sales strategies in line with evolving customer needs.
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.