Sankyo Tateyama Posts Revenue Drop Despite Price Increases Amid Cost Pressures

TOKYO, Jul 09 (Pulse News Wire) – Sankyo Tateyama,inc. (5932.T) reported a revenue decline of approximately ¥1.800 billion for the fiscal year ending May 2026 due to lower sales volumes despite price increases and favorable exchange impacts.

Operating profit remained stable, but the company recorded a lower net profit of about ¥13.40 billion due to significant impairment losses in its building materials division. The company attributed the revenue drop to slower-than-expected recovery in domestic and international sales volumes, compounded by higher aluminum ingot prices and raw material costs. However, efforts to improve cost structures contributed positively to operating margins. Sankyo Tateyama also noted that a specialized production line aimed at weight reduction in automobiles began operations as planned, with an investment of around ¥10.00 billion.

For the next fiscal year ending May 2027, Sankyo Tateyama forecasts a roughly ¥3 billion decrease in operating profits compared to its medium-term plan, citing ongoing challenges in the construction market and rising aluminum prices. Despite these headwinds, the firm expects improved profitability through continued asset optimization and cost-cutting measures. In addition, the company plans to further streamline its operations by reducing personnel by 230 employees and selling off fixed assets and investment securities to enhance efficiency. Sankyo Tateyama anticipates achieving cost savings of about ¥2.500 billion in the upcoming fiscal year from restructuring efforts initiated in Europe.