Sanyo Special Steel Co. Ltd. revised consolidated earnings guidance for the full-year ending March 31, 2024. For the full-year, the company expects to report consolidated net sales of JPY 355,000 million, operating income of JPY 11,400 million, ordinary income of JPY 12,000 million, net income attributable to owners of the parent of JPY 8,500 million and net income per share of JPY 156.01 compared with previous guidance of net sales of JPY 380,000 million, operating income of JPY 20,000 million, ordinary income of JPY 20,000 million, net income attributable to owners of the parent of JPY 14,000 million and net income per share of JPY 256.95.

Against the background of the slowdown of the Chinese economy among other relevant factors, demand has been in decline and huge inventory adjustment has taken place primarily in the construction/industrial machinery sector. In addition, the economy in Europe has continuously stagnated. Accordingly, the Company and Ovako, the company?s European special steel manufacturing affiliate, are expected to see a sharp decline in their net sales volume for the second half of the fiscal year, an associated increase in production costs, and a deteriorated sales mix.

These circumstances are likely to result in a significant fall in income in comparison with the previous forecasts (released on October 31, 2023), and therefore the Company has revised its full-year earnings forecasts.