Atsugi cuts FY26 outlook, scraps medium-term plan

TOKYO, May 13 (Pulse News Wire) – Atsugi CO.,LTD. (3529.T) reported a significant divergence between its previously forecasted fiscal year 2026 earnings and actual results.

The company’s revenue fell short of expectations due to persistent consumer caution and rising costs, leading to lower-than-projected operating profit and net income. For the fiscal year ending March 31, 2026, ATSugi had initially projected revenue of ¥22.2 billion but recorded ¥21.469 billion. lower operating profit was revised from ¥700 million to ¥1.019 billion, while lower net profit per share increased from ¥43.71 to ¥71.01.

The company attributes the shortfall to escalating production costs, unfavorable exchange rates, and higher raw material expenses. Additionally, ATSugi announced the withdrawal of its medium-term business plan covering fiscal years 2026 through 2028, citing challenging economic conditions that make achieving set targets difficult. The firm plans to reassess its strategic direction, focusing on structural reforms to improve profitability.

ATSugi stated that it remains committed to developing a new medium-term strategy but has yet to finalize projections for fiscal 2027 due to uncertainties surrounding potential impacts of ongoing reforms.