UBE Corporation Revises Earnings Forecast Downward on Weak Demand
UBE Corporation (TSE:4208) has lowered its earnings guidance for the fiscal year ending March 2026, citing softer-than-expected demand across all business segments.
| Item | Before | After | Change |
|---|---|---|---|
| Revenue | JPY 490.0bn | JPY 462.3bn | -5.7% |
| Operating Profit | JPY 25.0bn | JPY 18.9bn | -24.4% |
| Ordinary Income | JPY 37.5bn | JPY 37.5bn | +0.0% |
| Net Profit | JPY 27.5bn | JPY 23.9bn | -13.1% |
| EPS | JPY 283.15/share | JPY 246.05/share | -13.1% |
The chemical manufacturer expects revenue to decline JPY 27.7bn to JPY 462.3bn, with operating profit falling JPY 6.1bn to JPY 18.9bn. The company cited weaker-than-anticipated demand in its specialty chemicals and polymer segments as the primary driver. However, ordinary income (keijo rieki)—a Japan-specific profit metric that includes non-operating financial items—remains unchanged at JPY 37.5bn, as favorable foreign exchange movements and improved financial income offset the operating profit decline. Net profit attributable to parent shareholders is projected at JPY 23.9bn, down JPY 3.6bn, reflecting an additional special loss from accelerating the shutdown of its caprolactam and nylon polymer production in Thailand by one year to March 2026, which will trigger early retirement costs and accelerated depreciation charges.
The revision signals persistent headwinds in demand for UBE’s core products, though the company’s financial position remains supported by non-operating gains. The acceleration of the Thailand facility closure, while generating near-term losses, reflects management’s strategic response to market conditions. The company has maintained its dividend forecast unchanged, suggesting confidence in medium-term cash generation despite near-term earnings pressure.
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.