TOYOTA BOSHOKU CORPORATION [3116.T]
TOKYO, Apr 28 (Pulse News Wire) – Toyota Boshoku Corporation (3116.T) reported lower-than-expected profits for the fiscal year ending March 31, 2026, due to quality-related expenses and asset impairments. For the fiscal year from April 1, 2025, to March 31, 2026, the company's consolidated operating profit was significantly below its previous forecast.
Revenue increased to ¥2,037.063 billion compared to the earlier estimate of ¥1,980.000 billion, but operating profit was ¥58.949 billion from the projected ¥80.000 billion. Basic earnings per share dropped to ¥130 from ¥197. Net profit also declined to ¥23.271 billion from ¥46.614 billion previously estimated. The decrease in profitability was attributed to quality-related costs associated with recalls and impairment charges in North America, Central America, and South America.
Despite higher sales revenue driven by foreign exchange effects and new product launches, these additional expenses led to reduced overall performance. On an individual basis, Toyota Boshoku saw a rise in revenue to ¥941.728 billion from ¥900.450 billion last year. However, operating profit decreased to ¥27.925 billion from ¥30.000 billion. While extraordinary income improved due to increased dividend payments from subsidiaries, net profit rose slightly to ¥34.983 billion from ¥30.485 billion, benefiting from lower tax burdens.
Overall, despite positive revenue growth, unexpected expenses impacted the company’s bottom line, leading to lower-than-projected earnings.
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