Rengo Co., Ltd. (TSE:3941) has revised its earnings forecast for the fiscal year ending March 2026, citing weaker-than-expected performance in its European heavy-duty corrugated box business.
| Item | Before | After | Change |
|---|---|---|---|
| Revenue | JPY 1005.0bn | JPY 1005.0bn | +0.0% |
| Operating Profit | JPY 40.0bn | JPY 37.0bn | -7.5% |
| Ordinary Income | JPY 40.0bn | JPY 37.0bn | -7.5% |
| Net Profit | JPY 24.0bn | JPY 21.0bn | -12.5% |
| EPS | 96.85 | 84.66 | — |
The company attributed the downward revision primarily to deteriorating profitability in its European operations. This includes a special loss of JPY 189bn related to the impairment of tangible fixed assets, goodwill, and intangible assets associated with TriCo Co., as well as JPY 24bn in relocation costs for the Shonan plant.
The revision underscores the impact of operational challenges in Europe, which has led to a decline in operating profit, ordinary income, and net profit. Investors should monitor the company’s future guidance and potential recovery strategies, particularly given the significant impairment charges and their associated financial impact.