Chubu Steel Plate Co., Ltd. Revises Earnings Forecast — Operating Profit Down 75%

Chubu Steel Plate Co., Ltd. Revises Earnings Forecast — Operating Profit Down 75%

Chubu Steel Plate Co., Ltd. (TSE:5461) has downwardly revised its consolidated earnings forecast for the fiscal year ending March 2027, citing delayed pricing improvements in its core thick plate business.

The company attributed the revision to slower-than-expected penetration of price increases. While sales volumes for thick plates are tracking near plan, selling prices have fallen short of initial assumptions, compressing profitability across the board. For the full fiscal year, the company now forecasts revenue of JPY 68.7bn (down JPY 900M or 1.3%), operating profit of JPY 300M (down JPY 900M or 75.0%), ordinary income (keijo rieki) of JPY 600M (down 60.0%), and net profit of JPY 300M (down 66.7%). Earnings per share are projected at JPY 11.32/share, down from JPY 33.22/share previously.

The revision underscores pricing headwinds in Japan’s steel plate sector. Despite stable demand, the company’s inability to fully pass through cost increases to customers has resulted in a sharp contraction in operating margins. The interim period (six months ended September 2026) shows particularly acute pressure, with operating profit swinging to a loss of JPY 800M. International investors should note that ordinary income in Japan includes non-operating financial items and differs materially from operating profit. The magnitude of the profit downgrade—particularly the 75% operating profit reduction—signals meaningful near-term earnings challenges 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.