Notice Concerning Differences Between Forecasts and Actual Results for the Second Quarter (Interim) of the Fiscal Year Ending March 2027 and Revision of Full-Year Earnings Forecast

Differences in Forecasts and Revision of Full-Year Outlook

This report discloses the differences between actual results for the second quarter of the fiscal year ending March 2027 and the initial forecasts, and downwardly revises the full-year earnings forecast in light of recent business trends. Although net sales are unchanged from the previous forecast, operating income, ordinary income and net income attributable to owners of the parent are expected to decline significantly year on year, and net income per share is also expected to decrease. The primary reasons are that the sharp rise in iron scrap prices has not been offset by improved selling prices, and the continued impact of higher raw material costs and yen depreciation and energy costs.

Impact on Shareholders and Future Outlook

Under the revised full-year forecast, net sales are expected to be flat, but profits are anticipated to be squeezed by continued higher raw material prices and increased costs. Going forward, key priorities will be suppressing raw material costs, pricing strategy, and implementing measures to mitigate the impact of energy costs.