TODA Kogyo Corp. Special Loss and Revisions to Full-Year Forecast

TOKYO, May 15 (Pulse News Wire) – Toda Kogyo Corp. (4100.T) reported a special loss due to the sale of its equity stake in BASF Toda Battery Materials and Recycling GmbH.

The company also revised its full-year forecast for the fiscal year ending March 31, 2026, citing lower-than-expected sales of soft magnetic materials. In a board meeting held on February 26, 2026, Todas Kogyo decided to sell its entire equity interest in BASF Toda Battery Materials and Recycling GmbH to BASF Battery Materials and Recycling GmbH. As a result, the company recorded a special loss of ¥3.016 billion related to the anticipated future impairment of the investment.

Regarding the full-year forecast revisions, Todas Kogyo previously projected revenues of ¥28.50 billion, operating profit of ¥1 billion, ordinary profit of --¥300 million, and net income attributable to shareholders of --¥700 million per share. However, the actual results showed revenues of ¥28.04 billion, operating profit of ¥862 million, ordinary profit of --¥77 million, and net income attributable to shareholders of --¥3.455 billion per share. The revenue and operating profit fell below initial forecasts, while ordinary profit exceeded expectations due to higher-than-anticipated earnings from affiliated companies and foreign exchange gains.

The overall net income was negatively impacted by the special loss, resulting in a shortfall compared to the previous projections.