Updated Mar 23, 2026 by Kanematsu Corporation
Kanematsu Corporation reported a 1.1% year-on-year increase in net sales to 540.3 billion yen for the first half of fiscal year 2016, despite a 23.5% decline in operating income to 8.5 billion yen.
Net income attributable to owners of the parent fell 27.1% to 4.4 billion yen, largely due to 1.5 billion yen in extraordinary losses incurred from exiting the textile business.
The Electronics & Devices division was the primary growth driver, reporting increases in both sales and income fueled by demand for smartphone components, imaging equipment, and ICT solutions.
Profitability was negatively impacted by the Steel, Materials and Plant division, which suffered from low crude oil prices affecting oilfield tubing and a lack of large-scale infrastructure projects.
The Foods & Grain division experienced a margin squeeze, reporting higher sales but lower income due to weak performance in feedstuff and meat product transactions.
The company maintained a stable financial position with an improved equity ratio of 21.1% and a net debt-to-equity ratio of 0.7 times.
Management plans to maintain an annual dividend of 5.0 yen per share for the full fiscal year despite the overall contraction in profitability.
Kanematsu Corporation reported a 1.1% year-on-year increase in net sales to 540.3 billion yen for the first half of fiscal year 2016, despite a 23.5% decline in operating income to 8.5 billion yen.
Net income attributable to owners of the parent fell 27.1% to 4.4 billion yen, largely due to 1.5 billion yen in extraordinary losses incurred from exiting the textile business.
The Electronics & Devices division was the primary growth driver, reporting increases in both sales and income fueled by demand for smartphone components, imaging equipment, and ICT solutions.
Profitability was negatively impacted by the Steel, Materials and Plant division, which suffered from low crude oil prices affecting oilfield tubing and a lack of large-scale infrastructure projects.
The Foods & Grain division experienced a margin squeeze, reporting higher sales but lower income due to weak performance in feedstuff and meat product transactions.
The company maintained a stable financial position with an improved equity ratio of 21.1% and a net debt-to-equity ratio of 0.7 times.
Management plans to maintain an annual dividend of 5.0 yen per share for the full fiscal year despite the overall contraction in profitability.