Kurita Water Industries Ltd.
Notice of Revision to Earnings Guidance Due to Recognition of Construction Losses and Recognition of Extraordinary Losses in Non-Consolidated Financial Statements
Due to anticipated construction losses on a project of a U.S. subsidiary, interim revenue for the fiscal year ending March 2027 is expected to exceed prior guidance, but profits are expected to decline substantially. For the full year, revenue is expected to increase while operating profit, net income attributable to owners of the parent for the interim period, and net income are substantially revised downward. An equity valuation loss of 36.2 billion yen will be recorded as an extraordinary loss.
Key Figures
- Revenue: 206,800 million yen (interim) / 455,000 million yen (full year outlook)
- Operating Income: 9,400 million yen (interim) / 43,500 million yen (full year outlook)
- Net Income Attributable to Owners of Parent (interim): 7,300 million yen / 28,700 million yen (full year outlook)
AI要約
Revision to Earnings Guidance
Due to a significant increase in estimated total construction costs, design delays, and additional material requirements for a large water treatment equipment project of a consolidated U.S. subsidiary, the construction progress rate has declined. Consequently, revenue and profits are expected to fall below previously anticipated levels, and the consolidated earnings forecasts for the second quarter and full year of the fiscal year ending March 2027 have been revised. Interim revenue is now expected to exceed the prior forecast, but each profit metric has been significantly revised downward. There is no change to the mid-term targets of the PSV-27 plan.
Recognition of Extraordinary Loss and Future Measures
In the non-consolidated financial statements, an equity valuation loss of 36.2 billion yen will be recorded as an extraordinary loss. This amount will be eliminated in consolidation and therefore will not affect consolidated results. Going forward, the Company will strengthen management systems to complete the remaining scope of work, enhance project execution capabilities, and apply lessons learned to subsequent projects. The status of this project and the Company’s responses will be explained at the financial results briefing.
Kurita Water Industries Ltd.
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