Shinagawa Refra Co., Ltd. (TSE:5351) has revised its earnings forecast for the full fiscal year ending March 2026, projecting a notable decline in net profit.
| Item | Before | After | Change |
|---|---|---|---|
| Revenue | JPY 176.0bn | JPY 176.0bn | +0.0% |
| EBITDA | JPY 21.5bn | JPY 21.5bn | +0.0% |
| Operating Profit | JPY 13.0bn | JPY 13.0bn | +0.0% |
| Ordinary Income | JPY 14.9bn | JPY 14.9bn | +0.0% |
| Net Profit | — | — | — |
| EPS | JPY 67,933/share | JPY 57,014/share | -16.1% |
The company cited deteriorating business conditions as the primary reason for the revision. At its Hoshō plant, the domestic refractory business environment worsened significantly compared to initial expectations, leading to underperformance in production and sales. This resulted in an impairment loss of approximately JPY 43bn. Additionally, its Brazilian consolidated subsidiary SRB faced reduced demand for refractories due to Chinese steel imports and protectionist trade measures, contributing an impairment loss of about JPY 39bn. Reframax, another subsidiary, also recorded an impairment loss of JPY 15bn due to the decline in Brazil’s steel industry.
The revised forecast reflects a lower net profit and EPS, signaling a decline in profitability. Investors should monitor the company’s ability to recover from these challenges and restore financial performance.