Nippon Denko Co., Ltd. Revises FY2026 Earnings Down on Investment Loss

Nippon Denko Co., Ltd. Revises FY2026 Earnings Down on Investment Loss

Nippon Denko Co., Ltd. (TSE:5563) has revised its full-year earnings forecast for the fiscal year ending December 2026, raising revenue guidance while sharply cutting ordinary income (keijo rieki) due to equity-method investment losses at an affiliated ferroalloy producer.

The company revised its forecast based on second-quarter consolidated results and currently available information. Ordinary income plummeted to JPY 1.50bn from JPY 7.00bn following significant equity-method investment losses recorded at Pertama Ferroalloys Sdn. Bhd., an affiliated company. The company also newly disclosed operating profit of JPY 11.0bn and net profit attributable to parent shareholders of JPY 500M, which were previously unannounced. Revenue rose modestly to JPY 81.1bn, reflecting ferroalloy product market strength and yen weakness.

However, management emphasized that underlying business profitability remains solid. On an “underlying basis” (excluding one-time inventory impacts and other temporary factors), ordinary income was revised upward to JPY 7.5bn from JPY 6.0bn, driven by higher ferroalloy prices, favorable currency effects, increased incineration ash processing volumes, and stable molten metal market conditions. The company maintained its shareholder return policy tied to underlying net profit, revising the annual dividend to JPY 17.00/share (interim JPY 5.50/share, year-end JPY 11.50/share). The revision signals that core operational performance is tracking ahead of prior expectations, despite the accounting impact of the affiliated company’s losses.

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.