Hokuetsu Corporation lost ¥1.442bn at the operating line in the six months to September 2026, against a ¥2.019bn operating profit a year earlier, even as sales rose 5.6% to ¥147.6bn.
What management blames
The paper and pulp maker said price revisions and exchange rates lifted sales. It attributed the loss to higher raw-material and fuel prices linked to heightened Middle East tension, and to lower pulp prices at overseas subsidiaries. The paper and pulp segment lost ¥2.079bn, compared with a ¥1.144bn profit a year earlier. The ordinary result also turned negative, a ¥405mn loss against a ¥3.006bn profit.
The loss was wider than Hokuetsu's own May forecast of a ¥1.0bn operating loss. In a separate notice it cited lower export volumes of printing paper and reduced efficiency.
Net profit survives on one-offs
Net profit attributable to owners of the parent was ¥654mn, down 72.5%, against a forecast loss of ¥1.0bn. Hokuetsu pointed to compensation received at an overseas subsidiary and a gain from forgiveness of lease obligations. The results show that gain at ¥1.137bn, alongside a ¥693mn gain on investment securities sales.
Guidance unchanged
Hokuetsu left its full-year forecast, issued on May 15, untouched: sales of ¥305bn, operating profit of ¥3bn, ordinary profit of ¥4bn and net profit of ¥5bn. Its results presentation assumes Dubai crude at $97 a barrel for the year and $100 in the second half. The first-half average was $94. The company also kept its dividend plan at ¥13 for the interim and ¥26 for the year.
The unchanged target now sits against a half-year operating loss.