Nippon Coke & Engineering Company, Limited (3315) Financial Summary for the Second Quarter (Interim) of the Fiscal Year Ending March 2027

Overview of Results

Consolidated results for the interim period recorded net sales of 48,107 million yen, a decrease year-on-year, while operating income returned to positive due to effects from transitioning to a production system based on two healthy furnaces. Although sales in the coke business decreased year-on-year, overall production efficiency improvements and cost reductions contributed to an increase in operating income versus the prior interim period. The Fuel & Resource Recycling segment experienced profit pressure due to lower sales volumes and the lapse of spot projects. The Integrated Engineering segment performed well, supported by stable orders and recovery in new demand. The interim net result was a loss, but performance exceeded the plan for the first half.

Outlook and Considerations

The company intends to stabilize the production system and effectively utilize aging equipment, aiming for profitability for the full fiscal year. However, results may be affected by market conditions and external factors such as demand trends in the Fuel & Resource Recycling division, fluctuations in raw material prices, and the suppression of operational troubles at coke furnaces. The consolidated forecast for the fiscal year ending March 2027 remains unchanged from the previously announced outlook, and notes regarding the use of forecasts are provided in the accompanying materials.