11-Nov-25 |
PRESS KOGYO CO., LTD. |
Question 1: Higher than expected H1 operating profit
Que | stion: What were the specific factors and amounts involved in the higher than expected operating profit due to improved |
sales mix at Press Kogyo? | |
Answer: | |
• | Increase in sales volume of automobiles and construction machinery exceeded expectationsImproved sales mix |
at Press Kogyo and in Thailand, as well as decrease in depreciationAs a result, the operating profit ratio improved to 6%. | |
• | Benefits from streamlining investments and progress in passing on increases in energy and labor costs to prices |
Withdrawal from the U.S. panel business, successful initiatives such as lowering the break-even point at Chinese sites | |
In addition to increased volumes, vehicle model and item mix also trended favorably. | |
• | The upside of around 0.4 billion yen can be attributed to the effects of sales composition improvements and streamlining. |
Question 2: Factors in the upward revision of the full-year forecast
Que | stion: Can you provide a detailed breakdown of the upward revision of approximately 6.0 billion yen in net sales |
(small truck parts, Thailand and the U.S.)? | |
Answer: | |
• | Small truck parts: Sales increased mainly to North America ahead of regulatory changes, and exports increased significantly |
• | Thailand: Production has not recovered to the expected level; but has shown signs of bottoming out and for certain customers, |
production volume and product mix have not declined as much as expected. | |
Question 3: Progress on the medium-term business plan (net sales 240.0 billion yen, operating profit ratio 8%)
Question: | Having reached an operating profit ratio of 6% during the period, how certain are you about the medium-term business plan? |
Answer: | |
• | The demand situation has been tough, but each production site has steadily added new items to its portfolio and some items are |
expected to contribute to its revenue in 2027-2028. | |
• | The results from our efforts under the medium-term business plan have contributed to improved performance during the current |
fiscal year We recognize that these are achievable targets and we will continue working toward them. | |
• | The high profit ratio in the current fiscal year was due to contributory factors not related to sales, such as higher than expected |
sales volume to certain customers in Thailand, cost reductions , improved energy costs, foreign exchange effects, and progress | |
on streamlining. a decrease in the cost of sales. | |
Question: | What are the high level streamlining effects in the current fiscal year and the effects from next fiscal year onward. |
Answer: | |
• | While I cannot share specific details , the streamlining is progressing steadily. |
From next fiscal year onward, our policy is to accumulate streamlining effects to drive increased profits. | |
• | Impact of tooling: There is an effect from dies associated with launching new vehicle models in Thailand (amount not disclosed) |
I won't comment on details. | |
Question 5: Impact of unstable semiconductor supply
Question: What has been the impact of issues with Chinese semiconductor manufacturers?
Answer: | |
• | There are indirect impacts, and we are currently monitoring the situation. |
• | We have heard from our main customers that the measures they took during the COVID-19 pandemic (securing alternative parts |
and suppliers) have been effective and that they do not expect major long-term impacts. However, we will continue to monitor | |
the impacts. | |
Question 6: Thailand market and overseas development strategy going forward
Question: | What is your strategy for developing sites and key markets outside of Thailand? |
Answer: | |
• | For now, we are focusing on enhancing and expanding our existing overseas sites. |
• | We will monitor the medium-term business plans of our main customers, and prioritize responding to them through our existing sites. |
Question 7: U.S. truck tariffs and response to Isuzu's new plant
Que | stion: What is the impact of U.S. truck tariffs from November? |
How will you respond to Isuzu's plant in South Carolina? | |
Answer: | |
• | Tariffs: Currently there are no direct exports, and the indirect impact through our customers is not significant at this time. |
However, we are currently monitoring the impact on volume with regard to additional tariffs on medium-duty trucks . | |
• | New North American plant of Isuzu Motors: We are currently examining this positively with a view to its becoming a major customer |
We have positioned it as a part of our overseas production site enhancement and expansion. | |
Question 8. Outlook for next fiscal year
Question: | What is your view on the direction of sales and profits for the next fiscal year? |
Answer: | |
• | As the middle year of the medium-term business plan, it is a year for closing and eliminating gaps. |
• | Demand forecasts are currently under examination, but we do not expect a dramatic drop. |
• | Even with sales about the same as the current fiscal year, our policy is to get closer to our medium-term business plan targets |
through higher quality management. | |