Yamato Kogyo Co., Ltd. Revises Earnings Forecast — Net Profit Up 22.3%

Yamato Kogyo Co., Ltd. Revises Earnings Forecast — Net Profit Up 22.3%

Yamato Kogyo Co., Ltd. (TSE:5444) raised its full-year earnings guidance for the fiscal year ending March 2027, citing stronger-than-expected performance from its Thai subsidiary and U.S. affiliated company offsetting domestic headwinds.

The company lifted full-year revenue guidance to JPY 178.0bn from JPY 166.0bn (+7.2%), while raising ordinary income (keijo rieki)—a Japan-specific profit metric including non-operating items—to JPY 87.0bn from JPY 68.0bn (+27.9%). Net profit attributable to parent shareholders rose to JPY 57.5bn from JPY 47.0bn (+22.3%), translating to earnings per share of JPY 962.30 versus the prior JPY 786.58. The interim period showed particularly strong momentum, with revenue climbing 8.1% and ordinary income jumping 30.0%.

Management attributed the upward revision to robust first-half results from its Thai consolidated subsidiary and U.S. equity-method affiliate, both exceeding initial projections. However, the company tempered full-year operating profit guidance downward to JPY 3.2bn from JPY 4.5bn, reflecting anticipated revenue deterioration in its domestic steel business amid persistent global economic uncertainty and elevated low-cost Chinese steel exports. Operating environments outside the U.S. are expected to remain challenging through year-end.

The revision highlights a divergence between operating and ordinary income trajectories: while core business profitability faces headwinds, non-operating gains—likely from financial income and foreign exchange—are driving the substantial bottom-line upgrade. Investors should note the reliance on non-operating items to offset domestic steel sector weakness.

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.