TOKYO, Apr 24 (Pulse News Wire) – Rengo CO.,LTD. (3941.T) reported an impairment loss of ¥18.91 billion due to poor performance in its European heavy goods pallet business.
The company revised its fiscal year 2026 forecast, projecting lower operating profit and net income compared to previous estimates. In detail, Rengo recorded an impairment loss related to tangible fixed assets, goodwill, and intangible assets of Tri-Co Packaging & Logistics GmbH, a subsidiary acquired in August 2019. Due to recent challenges in Europe's automotive industry, the subsidiary’s profitability fell below initial expectations. As a result, the company recognized a significant reduction in recoverable amount, leading to the impairment charge.
For the fiscal year ending March 31, 2026, Rengo adjusted its forecasts. Revenue remains close to earlier projections, but operating profit and ordinary profit are expected to decline by 7.5%, while net profit is anticipated to drop by 12.5%. Special items contributing to earnings include compensation received for land acquisition at the Shonan factory and gains from selling policy-held shares, offset partly by additional expenses such as relocation costs associated with the land acquisition. Despite the current setbacks, Rengo plans to enhance operational efficiency and expand supply to other industries within Europe to stabilize long-term growth prospects.
The company continues to view Tri-Co as a crucial asset and aims to improve its value moving forward.
Forecast revision — FY2026/3Downward revision
| Metric | Prior | Revised | Change |
|---|---|---|---|
| Revenue | ¥1,005,000M | ¥1,005,000M | +0.0% |
| Op. profit | ¥40,000M | ¥37,000M | -7.5% |
| Net profit | ¥24,000M | ¥21,000M | -12.5% |
Source: TDNet filing · Figures in millions of yen
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