TOKYO, May 12 (Pulse News Wire) – Rohm Company Limited (6963.T) reported a significant impairment loss of ¥193.6 billion in its fiscal year ending March 2026 due to changes in the business environment affecting semiconductor assets, particularly in its SiC-related production facilities. The company also revised its previously announced earnings forecast, indicating a shortfall in net profit expectations primarily attributed to the impairment charges.
In detail, ROHM conducted a rigorous assessment of the profitability and future outlook of certain assets within its portfolio, including LSI, semiconductors, modules, and others. Based on the “Accounting Standards for Impairment of Fixed Assets,” the company recognized an impairment loss mainly associated with its power device semiconductor business, especially in SiC operations across domestic and international factories. Despite ongoing efforts to enhance efficiency through process improvements and investment adjustments, factors such as reduced EV incentives in the United States and relaxed regulations on internal combustion engine vehicles in Europe have led to a more pessimistic view of the BEV market growth rate.
Regarding the earnings forecast revision, ROHM’s consolidated sales revenue met the previous estimates released on February 04, but operating and ordinary profits exceeded forecasts due to improved cost rates and product mix optimization. However, the impairment losses resulted in lower-than-expected net income attributable to parent shareholders. Specifically, compared to the previous forecast: | Item | Previous Forecast (A) | Actual Result (B) | Difference (B-A) | |------------------|-------------------------|-------------------------|-------------------------| | Revenue | ¥480.0 billion | ¥481.1 billion | ¥1.148 billion | | Operating Profit | ¥6 billion | ¥10.86 billion | ¥4.864 billion | | Ordinary Profit | ¥11.00 billion | ¥19.22 billion | ¥8.222 billion | | Net Income | ¥10.00 billion | ¥--¥158.4 billion | ¥--¥168.4 billion | The company attributes the positive variance in operating and ordinary profits to cost efficiencies and favorable product mixes, while the negative impact on net income is largely due to the impairment losses recorded.
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