TOKYO, May 11 (Pulse News Wire) – S.t.corporation (4951.T) revised its mid-term plan targets for fiscal year ending March 2027 due to recent operational challenges and environmental factors. At a board meeting held, the company decided to adjust its sales and profit forecasts for the three-year period from FY2025 to FY2027 under the “SMILE 2027” strategy.
According to the revised plans, the company now expects sales of ¥52 billion and operating profit of ¥3.5 billion for the fiscal year ending March 2027, down from initial projections of ¥54 billion and ¥4 billion respectively. The adjusted operating margin rate stands at 6.7%, compared to the previous target of 7.4%. Return on Equity (ROE) was also revised downward from 12.5% to 11.5%.
The adjustments come amid ongoing issues such as rising raw material costs, sluggish performance in existing key businesses, and missed targets for new products and high-value-added goods. Additionally, the company anticipates further risks related to supply chain disruptions and price volatility stemming from geopolitical tensions in the Middle East. In light of these challenges, S.t.corporation plans to implement additional measures including price adjustments and cost-cutting initiatives to mitigate potential impacts.
The revised figures align with the preliminary earnings forecast released alongside today’s announcement.
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