Onoken Posts Loss Amid Weak Steel Demand

TOKYO, May 15 (Pulse News Wire) – Onoken CO.,LTD. (7414.T) reported a lower net profit of -¥2.218 billion for the fiscal year ended March 31, 2026, compared to a profit of ¥5 million in the previous year.

Revenue increased to ¥253.1 billion from ¥2.700 billion due to reduced sales volumes and weaker steel prices. Operating income was ¥47.3 million from ¥69 million, while ordinary income also dropped to ¥47.3 million from ¥69 million. The company attributed the decline primarily to lower demand across its main markets and increased depreciation expenses associated with equipment upgrades.

Additionally, a significant impairment loss was recorded in the Kyushu-Chugoku region, contributing to the overall negative performance. Looking ahead, Onoken forecasts revenue growth of 10% for the fiscal year ending March 31, 2027, with operating income expected to rise to ¥63 billion. Despite ongoing challenges, the company remains committed to expanding its sales areas and improving its market share through strategic initiatives outlined in its long-term vision, "Vision 2035." Onoken plans to implement regional restructuring beginning April 1, 2026, aiming to enhance collaboration within its group companies and strengthen its operational resilience against fluctuating market conditions.