Godo Steel, Ltd. Revises H1 FY2027 Earnings Down on Scrap Costs
Godo Steel, Ltd. (TSE:5410) has downwardly revised its consolidated earnings forecast for the six months ending September 30, 2026, citing elevated iron scrap prices that are pressuring margins faster than sales price improvements can offset.
| Item | Before | After | Change |
|---|---|---|---|
| Revenue | JPY 98.0bn | JPY 100.0bn | +2.0% |
| Operating Profit | JPY 2.30bn | JPY 600M | -73.9% |
| Ordinary Income | JPY 2.60bn | JPY 1.00bn | -61.5% |
| 親会社株主に帰属する中間純利益 | JPY 1.30bn | JPY 800M | -38.5% |
| 1株当たり中間純利益 | JPY 88.90/share | JPY 55.68/share | JPY -33.22/share |
The steelmaker attributed the revision to a timing mismatch between input cost inflation and output price realization. While selling prices have improved, the company noted a lag in reflecting these gains into actual shipment unit prices during the first quarter. More significantly, iron scrap—the company’s primary raw material—has remained elevated relative to initial assumptions, compressing operating profit by 73.9% despite modest revenue growth of 2.0%.
For investors, the revision underscores the cyclical vulnerability of scrap-based steelmakers to commodity price swings. The company maintained its full-year guidance unchanged, citing ongoing uncertainty around Middle East geopolitics and scrap price trajectories. Near-term earnings recovery hinges on the pace at which sales price improvements translate into realized unit prices and the trajectory of scrap costs in coming months.
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.