SHIBAURA MACHINE CO., LTD. <6104> shares plunged to their daily limit-down on Tuesday, dropping 700 yen to 4,210 yen from Monday's close to mark their first decline in four sessions. The sell-off was triggered by the company's post-market announcement on Monday of its full-year earnings guidance for the fiscal year ending March 2027, which projected a dip in operating profit, alongside its financial results for the fiscal year ended March 2026. For the fiscal year ending March 2027, the company forecasts net sales of 137 billion yen (up 3.2% year-on-year), an operating profit of 4.2 billion yen (down 3.8%), and a net profit of 2 billion yen (up 94.4%), assuming an exchange rate of 150 yen per dollar. Management pointed to a cautious climate for capital expenditure amid heightened geopolitical risks, noting persistent uncertainties such as procurement challenges and price surges for crude oil and raw materials. Its order backlog as of late March 2026 stood at 96.64 billion yen, down 11.7% from a year earlier.

For the fiscal year ended March 2026, net sales dropped 21.0% year-on-year to 132.815 billion yen, trailing the previous guidance of 140 billion yen. Operating profit slid 69.0% to 4.367 billion yen against a projected 5 billion yen, while net profit plunged 91.8% to 1.028 billion yen from an expected 3.3 billion yen. Top- and bottom-line metrics missed targets primarily due to a wait-and-see approach to capital spending in the molding machinery segment. While recurring profit hovered near initial projections, net profit significantly underperformed due to a goodwill impairment hit from SHIBAURA MACHINE LWB GmbH?which became a consolidated subsidiary in November 2025?and special retirement allowances linked to production restructuring for the injection molding machine business in China.

Source: MINKABU PRESS

*Translated by generative AI. Click here for the original article.