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During FY26 1Q, although inflation has been restrained, recovery of the global economy remained moderate due to uncertainties resulting from the tariff policies of the United States as well as geographical risks, etc. In semiconductor-related markets and information and communication-related markets, which are our principal markets, demand continued to be sluggish, except in AI-related markets which remained stable.
Sales revenue for FY26 1Q decreased by 4.2%, as compared with the three months ended June 30, 2024 (FY25 1Q), reflecting decreased sales revenue in the Electronic Components Business and the Solutions Business due mainly to the impact of a stronger yen against U.S. dollar.
Profits decreased due mainly to the decrease in sales and the impact of one-time cost of approximately 2.1 billion yen incurred in connection with the execution of an agreement to transfer the silicon diode power semiconductor business, which more than offset the effect of cost reductions in each business and improved profitability resulting from structural reforms. As a result, operating profit decreased by 11.5% and profit before income taxes decreased by 6.7%, as compared with FY25 1Q. Profit attributable to owners of the parent increased by 0.9%, as a result of a decrease in tax expenses by approximately 4 billion yen due mainly to an adjustments in tax amount in consequence of the sale of KDDI Corporation shares.
Average exchange rates for FY26 1Q were 145 yen to the U.S. dollar, marking appreciation of 11 yen, or 7.1%, and 164 yen to the Euro, marking appreciation of 4 yen, or 2.4%, compared with FY25 1Q. As a result, sales revenue and profit before income taxes after translation into yen for FY26 1Q were pushed down by approximately 22 billion yen and 1.7 billion yen, respectively, as compared with FY25 1Q.
[Released on July 30, 2025]
The forecasts of consolidated financial results for FY26 as well as the forecasts by reporting segment have not been changed from the forecasts announced in May 2025.
