Oriental Shiraishi Corporation revised earnings guidance for the year ending March 31, 2026. For the period, the company now expects net sales of ¥66,000 million, Operating profit of ¥4,900 million, Profit attributable to owners of parent of ¥2,700 million or ¥20.87 basic per share against previous guidance of net sales of ¥66,000 million, Operating profit of ¥4,900 million, Profit attributable to owners of parent of ¥3,250 million or ¥21.15 basic per share. Reason for the revision and future actions: As stated, due to the additional costs incurred at the Target Subsidiary, earnings are now projected to fall below the previously announced forecast at each profit level.
Of these costs, approximately 230 million yen will be recorded as provision for loss on construction contracts, representing the estimated amount of future losses related to construction contracts for the current fiscal year and beyond. However, as profitability of construction projects is expected to improve, operating profit and ordinary profit are projected to remain at the previously forecast levels. On the other hand, approximately ¥770 million will be recorded as extraordinary losses for costs related to the reinstallation, and the total amount of approximately ¥1,000 million will have the effect of reducing profit attributable to owners of parent.
The Company and the Target Subsidiary have determined that the circumstances requiring the reconstruction and reinstallation stem from a significant product nonconformity at Kanadevia Corporation, to whom the fabrication was outsourced. The company will pursue strict claims for damages against Kanadevia Corporation for the burden of costs and other expenses related to the reconstruction and reinstallation.
