Japan-based Tokyo Steel has announced its interim consolidated financial results for the first half ending September 30 of the fiscal year 2025-26.
In the given quarter, the company reported a net profit of JPY 4.57 billion ($30.37 million), compared to a net profit of JPY 9.83 billion in the same period of the previous financial year, while its sales revenues amounted to JPY 133.89 billion ($889.81 million), declining by 23.2 percent year on year. In addition, Tokyo Steel’s operating profit came to JPY 6.04 billion ($40.17 million), decreasing from an operating profit of JPY 13.92 billion recorded in the same half of last year.
In the first six months, the company produced 1.37 million mt of steel, decreasing by 9.5 percent year on year, while its total steel sales amounted to 1.43 million mt, down by 13.5 percent year on year.
In the meantime, the company revised its net profit forecast downwards to JPY 10 billion for the financial year 2025-26 while its sales revenues and operating profit are expected to total JPY 264.3 billion and JPY 10.5 billion, respectively.
According to Tokyo Steel’s report, during the July-September period, product shipments fell short of expectations due to factors including a decrease in construction capacity caused by labor shortages in the domestic construction industry. In addition, higher fixed costs due to a reduced production volume resulted in lower-than-expected profits for the period.