Link: https://links.sgx.com/1.0.0/corporate-announcements/UZZ3RBH2U78PI0AW/32016a06cd5279b8ad7c897c7e8c75b1f3b88821d4abfd9928143b7b0a21ebe1

Summary:

• Revenue fell 7.9% YoY to ¥1,115.3 billion in 1Q FY2025 (April–June 2025), reflecting lower volumes and weaker selling prices, especially in the steel segment.

• Business profit plunged 71.4% YoY to ¥16.26 billion; profit before tax down 73.8% YoY to ¥10.38 billion; profit attributable to owners down 74.1% to ¥7.13 billion.

• Net income per share dropped to ¥11.21 (1Q FY2024: ¥43.27).

• Comprehensive income turned negative at -¥26.29 billion (1Q FY2024: +¥74.56 billion), mainly due to large foreign currency translation losses.

• Steel business swung to a loss of ¥12.15 billion for the quarter from a profit of ¥31.56 billion last year due to weaker spreads, lower volumes, and inventory valuation losses.

• Engineering and trading segments remained profitable: Engineering profit rose to ¥5.75 billion; trading profit edged up to ¥12.61 billion.

• Equity ratio was 43.9%; total assets stable at ¥5.63 trillion.

• Interim dividend forecast cut to ¥40/share (vs. ¥50/share last year); full-year dividend forecast is ¥80/share.

• Full-year FY2025 guidance (revised): Revenue ¥4.75 trillion (down 2.3%), business profit ¥140 billion (+3.4%), profit attributable to owners ¥75 billion (down 18.4%).

• Steel production, shipments, and average selling prices all down YoY; export ratio at 39.9%.

• Key challenges: Deterioration in export profitability from yen appreciation, raw material price timing differences, and strong competition.

• Company expects significant profits improvement in the second half (2H profit forecast is much higher than 1H).

• Capital investment for FY2025 is planned at ¥420 billion; depreciation/amortization at ¥280 billion.

• Management maintaining cautious stance on outlook amid FX pressure, market competition, and cost trends.