Osaka Steel Co., Ltd. Revises Dividend Forecast — Q2 Interim Dividend Set to Zero

Osaka Steel Co., Ltd. Revises Dividend Forecast — Q2 Interim Dividend Set to Zero

Osaka Steel Co., Ltd. (TSE:5449) has revised its dividend forecast for the fiscal year ending March 2027, suspending its interim dividend due to significant losses tied to the withdrawal from its PT. KRAKATAU OSAKA STEEL joint venture.

The steelmaker determined that losses associated with the PT. KRAKATAU OSAKA STEEL exit represent a material impact on earnings, warranting suspension of the interim dividend payout. The company stated it will maintain a consolidated dividend payout ratio of approximately 30% based on ordinary income (keijo rieki), excluding the one-time withdrawal loss. The year-end dividend remains undecided pending assessment of damage from the 2024 Kumamoto earthquake at the company’s Kumamoto plant in western Japan, which will inform the final payout decision.

For investors, the interim dividend suspension reflects extraordinary charges rather than deterioration in core operations. Management’s commitment to a 30% payout ratio on normalized earnings signals intent to resume regular distributions once the joint venture exit and earthquake impact are fully quantified. The timing of the year-end dividend announcement will depend on completion of the Kumamoto facility damage survey, likely delaying clarity on full-year shareholder returns until later in the fiscal period.

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.