NAKAYAMA STEEL WORKS,LTD. [5408.T]
TOKYO, May 08 (Pulse News Wire) – Nakayama Steel Works,ltd. (5408.T) reported a decline in revenue for the second quarter of fiscal year 2026 due to reduced sales volumes and falling prices.
Revenue was ¥900 million compared to ¥800 million in the previous year. Operating profit dropped to ¥48.30 billion from ¥48.30 billion, while net profit attributable to shareholders increased to ¥32 million from ¥25 million. The company attributed the downturn to weak domestic demand, increased imports of cheaper steel materials, and the impact of a power plant accident last September which led to a three-month shutdown of its electric furnace. Despite efforts to maintain production through alternative iron sources during the shutdown, the company faced significant cost pressures, including expenses related to equipment repairs and raw material substitutions totaling ¥800 million.
Looking ahead, NAKAYAMA STEEL WORKS expects to increase sales volume and raise prices in the coming quarters. However, rising input costs and geopolitical risks could lead to further profit erosion. The company plans to divest land to secure funds for a new electric furnace project, anticipating a special gain of ¥500 million in the first half of the fiscal year. NAKAYAMA STEEL WORKS continues to target a dividend payout ratio above 30%, aiming for ¥11 per share in fiscal year 2026, up from ¥7 per share in the previous year.
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