1Q performance summary
Net sales were down YoY; contributing factors included lower sales under contract volumes in the steel bars business in Japan and lower selling prices in connection with falling raw material prices. This was despite growth in strategic businesses (precision spring components, overseas steel bars business).
Operating income decreased YoY; contributing factors included production cost increases associated lower sales under contract volumes in the steel bars business in Japan. However, strategic businesses contributed to earnings.
Ordinary income fell sharply, due mainly to losses on valuation of foreign exchange resulting exchange rate fluctuations at overseas subsidiaries during the first quarter in addition to lower operating income.
Despite the absence of the extraordinary losses recorded in the previous period, we recorded a net loss due to lower ordinary income and the impact of tax effect accounting.
Foreign exchange rate | ||
End of FY2024 1Q | End of March 2025 | End of FY2025 1Q |
161 yen | 150 yen | 145 yen |
*: Sales of production under contract to Nippon Steel Corporation
(JPY100M)
FY2024 1Q results | FY2025 1Q results | YoY change | ||
Net sales | 406 | 381 | △25 | |
Operating income | 13 | 8 | △5 | |
Ordinary income | 12 | 2 | △10 | |
Net income attributable to owners of parent company | 1 | △1 | △2 |
Factors contributing to changes in net sales and operating income
Net salesIncluding removal of the German springs business from consolidation.
(JPY100M)
exchange
gains/losses
Other
Foreign
Sales volumes
Sales under contract*
FY2025 1Q
results
FY2024 1Q
results
Selling prices
Operating income
*: Sales of production under contract to Nippon Steel Corporation
fixed costs
costs and
Production
FY2024 1Q
results
FY2025 1Q
results
Raw material prices
Selling prices
Other
Sales volumes
(JPY100M)
Including the impact of reduced sales under contract.
Results by segment
(JPY100M)
FY2024 1Q results | FY2025 1Q results | YoY change | ||
Special Steel Bars | Net sales | 205 | 187 | △18 |
Operating income | 6 | 0 | △6 | |
Springs | Net sales | 181 | 177 | △4 |
Operating income | 6 | 8 | 2 | |
Formed & Fabricated Products | Net sales | 24 | 20 | △4 |
Operating income | 2 | 1 | △1 | |
Machinery | Net sales | 16 | 18 | 2 |
Operating income | 0 | △1 | △1 | |
Other | Net sales | 10 | 10 | 0 |
Operating income | 1 | 1 | 0 | |
Consolidation adjustments | Net sales | △30 | △30 | 0 |
Operating income | 0 | 0 | 0 | |
Total | Net sales | 406 | 381 | △25 |
Operating income | 13 | 8 | △5 | |
Domestic steel bar sales volume (accumulated)
FY2024 1Q FY2025 1Q
84 Kt 84 Kt
Net sales (decreased)
Domestic: Lower sales under contract volumes and lower selling prices associated with falling raw material costs
Overseas (Indonesia): Higher sales volumes for commercial
vehicle
Operating income (decreased)
Production cost increases associated lower sales under contract volumes in the steel bars business in Japan
Springs business
Net sales (flat YoY)
Sales volumes were up in precision spring components and in the springs business in Japan
On the other hand, sales volumes fell at the North American subsidiary due to US tariff policy
Sales volumes fell due to withdrawal from the springs business in German
Decrease in yen equivalent due to yen appreciation
Operating income (increased)
Higher sales volumes in precision spring components and other businesses
Special Steel Bars business
Results by segment (Special Steel Bars, Springs)
(JPY100M) | |||
FY2024 1Q | FY2025 1Q | YoY | |
Net sales | 205 | 187 | △18 |
Operating income | 6 | 0 | △6 |
(JPY100M) | |||
FY2024 1Q | FY2025 1Q | YoY | |
Net sales | 181 | 177 | △4 |
Operating income | 6 | 8 | 2 |