Link: https://links.sgx.com/1.0.0/corporate-announcements/M8LZJOPEVT3TGFB0/ef932678dcaf73e1893e0adfb383f50d34dfc0c96fde006c59edf30367d14889

Summary:

• Net sales for the three months ended June 30, 2025 declined 5.6% YoY to ¥199.0 billion amid slower global economic recovery and exchange rate impacts.

• Operating income surged 53.9% YoY to ¥7.0 billion, primarily due to reductions in variable costs and expenses.

• Ordinary income rose 83.3% YoY to ¥4.0 billion.

• Profit attributable to owners of parent was ¥1.19 billion, up 598.1% YoY, recovering sharply from a low base last year.

• Comprehensive income dropped to ¥0.79 billion from ¥15.97 billion last year, impacted mainly by lower translation adjustments.

• Net income per share increased to ¥2.25 from ¥0.32 YoY.

• Total assets stood at ¥854.9 billion; net assets at ¥246.4 billion; equity ratio 27.0%.

• No dividend is declared for Q1 FY2026; full-year dividend forecast is undetermined.

• Full-year FY2026 forecast: Sales ¥790.0 billion (down 4.3% YoY), operating income ¥24.0 billion (up 4.5%), ordinary income ¥11.0 billion (up 5%), net loss ¥6.0 billion.

• By region:

  • Japan: Sales down 3.6%, segment income down 84.3% due to lower sales and adverse FX.

  • Americas: Sales down 14%, but segment income up 162.4% from cost savings.

  • Europe: Sales down 6.6%, smaller segment loss vs. last year.

  • Asia/Other: Sales down 4.6%, segment income up 9.2%.

• By product:

  • Bearing and Others: Sales down 1.6%, operating income down 31.4%.

  • CVJ/Axle: Sales down 8.2%, operating income up 282.3% from cost-control.

• Cash flows:

  • Operating activities: +¥18.6 billion (significant improvement vs. last year).

  • Investing activities: -¥7.8 billion (more spent on equipment).

  • Financing activities: -¥1.4 billion (less borrowings/repayments, dividends).

  • Cash and cash equivalents at Q1-end: ¥136.8 billion, up 7.1% from FY-end.

• Outlook: No changes to previously announced full-year guidance; focus remains on business structure transformation, cost and production reforms under the “DRIVE NTN100” plan.