Kuroda Precision Industries Ltd. (TSE:7726) revised its full-year 2026 earnings forecast, citing external challenges and underperformance from its subsidiaries.
| Item | Before | After | Change |
|---|---|---|---|
| Revenue | JPY 18.8bn | JPY 19.0bn | +1.1% |
| Operating Profit | JPY 180M | JPY 25M | -86.1% |
| Ordinary Income | JPY 40M | JPY 5M | -87.5% |
| Net Profit | JPY 130M | △80 | — |
| EPS | 2271 | △1430 | — |
The company attributed the downward revision to a combination of factors, including weaker-than-expected sales in its motor core business due to disrupted rare earth magnet imports from China amid worsening Sino-Japanese relations, and a significant decline in performance from its German subsidiary, JGWT. The latter’s poor results, coupled with a special loss related to JGWT, led to a net loss for the consolidated group.
The revised forecast highlights the impact of geopolitical tensions and operational challenges on Kuroda’s profitability. The sharp drop in net profit and EPS underscores the material effect of these external pressures, raising concerns about the company’s ability to recover without further operational or strategic adjustments.