Nakayama Steel Works, Ltd. Financial Summary for the Second Quarter (Interim) of the Fiscal Year Ending March 2027

Overview of Performance

During this interim period, sales were flat to slightly down year-over-year, and profitability was squeezed by higher raw material and energy costs. Sales volume in the steel segment increased, but price pass-through is still in progress, and the fire at the hot-rolling plant also weighed on operating income, which declined from the prior year. Meanwhile, interim net income increased. Overall, higher raw material costs and the fire are negative factors, while cost reduction measures have produced some effect.

Outlook and Key Indicators

The full-year forecast assumes net sales of 155,000 million yen, operating income of 3,100 million yen, ordinary income of 1,600 million yen, and net income attributable to owners of parent of 3,900 million yen. Given uncertainty around raw material and energy cost trends and demand recovery, there is some progress but revisions remain possible. The impact of the hot-rolling plant fire could continue to affect future results, so cost pass-through and recovery of the supply system will be key.