Tokyo Steel Manufacturing Co., Ltd. Revises Earnings Forecast — Ordinary Income Swings to Profit

Tokyo Steel Manufacturing Co., Ltd. Revises Earnings Forecast — Ordinary Income Swings to Profit

Tokyo Steel Manufacturing Co., Ltd. (TSE:5423) has revised its earnings forecast for the fiscal year ending March 2027, raising ordinary income (keijo rieki) expectations on the back of gains from equity sales, though core operating performance remains under pressure.

The steelmaker now projects interim profit of JPY 1.00bn for the six months ending September 2026, compared with a prior forecast of breakeven, driven by investment securities gains. For the full fiscal year, ordinary income is expected to swing to JPY 1.00bn from a previously forecast loss, while net profit remains projected at a JPY 2.5bn loss. The company attributed the revision to accelerated sales of held equity securities, which generated investment gains offsetting operational headwinds.

Investors should note that the profit improvement stems entirely from non-operating gains rather than core business recovery. Operating profit remains forecast at a JPY 4.00bn loss for both the interim and full-year periods, signaling continued weakness in the company’s steel operations. The revision underscores reliance on portfolio liquidation to offset operational challenges, a pattern that may not be sustainable long-term. Revenue guidance remains flat at JPY 155.0bn for the interim period and JPY 315.0bn for the full year, reflecting a challenging market environment for the steelmaker.

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.