I. FY2025 2Q Results
II. Full-year Forecasts for FY2025
2Q performance summary
I. FY2025 2Q Results
Despite growth in strategic businesses (precision spring components, overseas steel bars business), net sales were flat YoY. Contributing factors included lower sales volumes under contract* in the steel bars business in Japan and lower selling prices traceable to falling raw material prices.
Operating income declined YoY. Contributing factors included lower productivity associated with lower volumes at the Muroran Works overall, including volume under contract, and lower operating ratios resulting from blast furnace issues. However, positive performance in the strategic businesses contributed to earnings.
Net income rose, due mainly to lower non-operating expenses and the resolution of the previous period's extraordinary losses on our withdrawal from the German springs business.
*: Sales of production under contract to Nippon Steel Corporation
(JPY100M)
FY2024 2Q results | FY2025 2Q results | YoY change | |
Net sales | 805 | 799 | △6 |
Operating income | 32 | 21 | △11 |
Ordinary income | 17 | 14 | △3 |
Net income attributable to owners of parent company | 0 | 7 | 7 |
Factors contributing to changes in net sales and operating income
I. FY2025 2Q Results
Net sales
Including △19 in volume under contract
Including removal of the German springs business from consolidation.
(JPY100M)
Other
FY2025 2Q
results
FY2024 2Q
results
Foreign exchange gains/losses
Selling prices
Sales volumes
Operating income
(JPY100M)
Sales volumes
Selling prices
Raw material prices (market-related)
Raw material prices
(non-market-related) *
Production costs and fixed costs
Inventory valuation, etc.
FY2024 2Q
results
FY2025 2Q
results
* Hot metal costs of blast furnaces jointly operated with Nippon Steel Corporation due to causes not including raw materials market prices (including exchange-rate fluctuations) but including operating ratios at the Muroran Works overall and effects of blast furnace issues
Results by segment
I. FY2025 2Q Results
Income fell sharply in the steel bars business in Japan. The Springs Business, however, showed YoY income growth. The overseas steel bars, Formed & Fabricated Products, and Machinery businesses all trended favorably.
(JPY100M)
FY2024 2Q results | FY2025 2Q results | YoY change | ||
Special Steel Bars | Net sales | 411 | 377 | △34 |
Operating income | 19 | △1 | △20 | |
Springs | Net sales | 336 | 361 | 25 |
Operating income | 6 | 15 | 9 | |
Formed & Fabricated Products | Net sales | 46 | 45 | △1 |
Operating income | 3 | 3 | 0 | |
Machinery | Net sales | 47 | 54 | 7 |
Operating income | 3 | 3 | 0 | |
Other | Net sales | 18 | 19 | 1 |
Operating income | 1 | 1 | 0 | |
Consolidation adjustments | Net sales | △54 | △57 | △3 |
Operating income | 0 | 0 | 0 | |
Total | Net sales | 805 | 799 | △6 |
Operating income | 32 | 21 | △11 | |
Results by segment (Special Steel Bars, Springs)
Special Steel Bars- Net sales (decreased)
[Domestic] (decreased):
Lower sales under contract volumes and lower selling prices associated with falling raw material costs
[Overseas (Indonesia)] (increased):
Higher sales volumes for motorcycles and passenger vehicles
- Operating income (operating loss)
[Domestic] (operating loss):
Lower productivity due to lower volumes at the Muroran Works overall, including volume under contract, and lower operating ratios resulting from blast furnace issues in September
[Overseas (Indonesia)] (increased): Higher sales volume and lower costs
Springs business
business (JPY100M) | |||
FY2024 2Q | FY2025 2Q | YoY | |
Net sales | 411 | 377 | △34 |
Operating income | 19 | △1 | △20 |
Domestic steel bar sales volume (first half) *Company portion | |
FY2024 2Q | 167 Kt |
FY2025 2Q | 166 Kt |
I. FY2025 2Q Results
-
Net sales (increased)
Sales volumes were up in precision spring components and in the springs business in Japan
Lower sales due to withdrawal from the springs business in Germany
-
Operating income (increased)
Higher sales volumes in precision spring components and other businesses
(JPY100M) | |||
FY2024 2Q | FY2025 2Q | YoY | |
Net sales | 336 | 361 | 25 |
Operating income | 6 | 15 | 9 |
Results by segment (Formed & Fabricated Products, Machinery)
Formed & Fabricated Products businessMachinery business
-
Net sales (decreased)
Higher sales volumes of special alloy powders
Sales volumes of precision castings and other products decreased
-
Operating income (increased)
Progress with the pass-through of higher production costs for precision castings and higher prices of the raw materials used to make alloys for special alloy powders
Higher production costs
-
Net sales (increased)
Higher sales of defense equipment, forging machinery, overseas power machinery, and other products
-
Operating income (decreased)
Despite higher sales, income decreased due to lower productivity in 1Q. The impact of this factor has been resolved recently.
I. FY2025 2Q Results
(JPY100M) | |||
FY2024 2Q | FY2025 2Q | YoY | |
Net sales | 46 | 45 | △1 |
Operating income | 3 | 3 | 0 |
(JPY100M) | |||
FY2024 2Q | FY2025 2Q | YoY | |
Net sales | 47 | 54 | 7 |
Operating income | 3 | 3 | 0 |
Impact of non-operating income/loss and extraordinary income/loss
FY2025 2Q Results
Non-operating income/loss improved due to reduced exchange loss and lower interest payments as debts decreased.
Extraordinary income/loss improved for various reasons, including the resolution of the previous period's extraordinary losses on our withdrawal from the German springs business.
Exchange rate | |||
Mar. 31, 2024 | JPY151 | Mar. 31, 2025 | JPY150 |
Sep. 30, 2024 | JPY143 | Sep. 30, 2025 | JPY149 |
(JPY100M)
FY2024 2Q results | FY2025 2Q results | YoY change | |||
Operating income | 32 | 21 | △11 | ||
Non-operating income/loss | △15 | △7 | 8 | ||
Translation (exchange profit and loss) | △8 | △2 | 6 | ||
Interest paid | △8 | △6 | 2 | ||
Ordinary income | 17 | 14 | △3 | ||
Extraordinary income/loss | △9 | 1 | 10 | ||
Insurance income | 2 | - | △2 | ||
Gain on sales of investment securities | - | 1 | 1 | ||
Loss on business liquidation* | △11 | - | 11 | ||
Net income before income taxes and other adjustments | 8 | 15 | 7 | ||
Tax expenses | △6 | △6 | 0 | ||
Net income attributable to non-controlling interests | △1 | △2 | △1 | ||
Net income attributable to owners of parent company | 0 | 7 | 7 | ||
I. FY2025 2Q Results
II. Full-year Forecasts for FY2025
Revisions of full-year forecasts of results
Full-year Forecasts for FY2025
The full-year operating income forecast has been revised downward due mainly to lower volumes at the Muroran Works overall and the effects of blast furnace issues in the domestic steel bars business. The Springs Business, however, is expected to exceed initial forecasts. (See p. 10 for details.)
The amount of extraordinary gains/losses has been revised due to the planned sale of assets, as well as a close review of the amount of the impact of structural reforms at overseas facilities projected at the start of the period.
Dividend forecasts remain unchanged based on the policy of paying dividends of at least JPY80/share annually during the period of the Mid-term Business Plan while targeting a dividend payout ratio of 40%.
(JPY100M)
Initial forecasts (May 14) | |||
1H results | 2H forecasts | Full-year | |
Net sales | 780 | 810 | 1,590 |
Operating income | 30 | 44 | 74 |
Ordinary income | 22 | 35 | 57 |
Net income attributable to owners of parent company | 13 | 17 | 30 |
Modified forecasts (November 6) | |||
1H results | 2H forecasts | Full-year | Difference |
799 | 791 | 1,590 | 0 |
21 | 23 | 44 | △30 |
14 | 16 | 30 | △27 |
7 | 18 | 25 | △5 |