Nippon Tungsten Co., Ltd. (TSE:6998) revised its earnings forecast for the full fiscal year ending March 31, 2026, citing a projected decline in net profit.
| Item | Before | After | Change |
|---|---|---|---|
| Revenue | JPY 12.8bn | JPY 12.8bn | +0.0% |
| Operating Profit | JPY 700M | JPY 710M | +1.4% |
| Ordinary Income | JPY 960M | JPY 1.13bn | +17.7% |
| Net Profit | JPY 700M | JPY 270M | -JPY 430M / -61.4% |
| EPS | JPY 144.33/share | JPY 55.67/share | -JPY 88.66/share |
The revision follows management’s decision to recognize impairment losses on fixed assets in the machinery parts business, which led to a significant drop in net profit. Additionally, rising raw material costs and shifting market conditions are expected to reduce demand for certain products. However, strong sales of key products and price increases have contributed to higher ordinary income.
The forecast adjustment highlights the impact of asset impairment on profitability, while the improvement in ordinary income suggests effective cost management and successful product launches. Investors should monitor future performance and potential asset revaluation as the company navigates these challenges.