Kyoei Steel Ltd.
Notice of Revision to Earnings Guidance
Revised full-year earnings guidance for the fiscal year ending March 2027. Net sales remain unchanged at 362,000 hundred million yen, while operating income is revised down to 9,500 hundred million yen (previously 14,000 hundred million yen), ordinary income to 9,000 hundred million yen (previously 14,000 hundred million yen), and net income attributable to owners of the parent to 4,800 hundred million yen (previously 8,400 hundred million yen). The main causes are weak domestic steel demand, iron scrap price trends, and expected losses from aging equipment at overseas sites.
Key Figures
- Net Sales: 362,000 hundred million yen
- Operating Income: 9,500 hundred million yen
- Ordinary Income: 9,000 hundred million yen
AI要約
Overview of the Revision to Earnings Guidance
This notice revises downward the full-year earnings guidance announced in July 2026. While net sales are unchanged at 362,000 hundred million yen, operating income, ordinary income, and net income attributable to owners of the parent have been substantially revised downward due to weak demand in the domestic steel business and deteriorating outlook for iron scrap prices. Overseas, Vietnam and North America are generally progressing as planned, but production shortfalls and increases in depreciation expenses at the U.S. site have had an adverse impact, leading to a challenging outlook for the second half.
Outlook and Causes Going Forward
The domestic steel business is expected to experience weak demand in the second half, with shipments forecast to be below the first half. Higher-than-assumed iron scrap prices and compression of trading margins are weighing on results. Overseas, Vietnam and Canada are on plan, but production issues caused by aging equipment at the U.S. site are expected to continue causing losses. Reflecting these factors, the company has revised down its profit metrics for the full year.
Kyoei Steel Ltd.
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