TOKYO, May 14 (Pulse News Wire) – COVER Corporation (5253.T) reported a special loss of ¥3.199 billion due to restructuring efforts related to its “Holos Earth” project. The company also revised its fiscal year 2026 earnings forecast downward, citing slower overseas sales amid tariff risks and inventory adjustments.
Operating profit fell below expectations by 1,143 million yen, while net income dropped by 2,683 million yen compared to previous forecasts. Additionally, key executives agreed to return portions of their compensation totaling two months’ worth of basic monthly salaries equivalent to 20% and 20%. The special loss was attributed to the discontinuation of certain services associated with the Holos Earth initiative, leading to impairment charges.
Management decided to reallocate resources towards enhancing core technologies and supporting strategic business areas. Despite initial progress in supply chain management and cost reduction measures, early asset rationalization efforts led to lower-than-expected results. In light of these developments, the company’s leadership acknowledged the impact on stakeholders and committed to further strengthening its operational foundation for sustained growth.
Detailed explanations of the asset rationalization strategies will be available in the publicly released quarterly briefing materials.
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