Notice of Revision to Full-Year Earnings Forecast

Summary

The full-year earnings forecast for the fiscal year ending March 2027 has been revised downward to net sales of 9,700 million yen, operating income of 200 million yen, ordinary income of 250 million yen, net income attributable to owners of parent of 180 million yen, and earnings per share of 27.75 yen. This revision reflects increases in raw material and logistics costs, exchange rate impacts, intensified competition, and a slowdown in demand for medical-use products. All comparisons to the previous forecast are downward revisions. Prior fiscal year results were net sales of 9,777 million yen, operating income of 211 million yen, ordinary income of 297 million yen, net income of 232 million yen, and earnings per share of 34.82 yen.

Background and Outlook

Exchange rate fluctuations and continued increases in raw material and logistics costs are expected to persist. Although price revisions for key products were implemented, competition in the machine tool market remains intense and supply-demand conditions are severe. The appreciation of local currencies at subsidiaries in Malaysia and China has pressured consolidated earnings. Going forward, the Company will continue its self-help efforts to improve productivity, closely monitor conditions, and respond as appropriate.