Kodama Chemical Industry <4222> announced its consolidated financial results for the second quarter of the fiscal year ending March 2025 (April-September 24th year). Revenue increased by 5.9% year-on-year to 7.78 billion yen, operating profit decreased by 11.9% to 0.034 billion yen, ordinary loss was 0.005 billion yen (compared to a loss of 0.064 billion yen in the same period of the previous year), and net loss attributable to the parent company's shareholders was 0.128 billion yen (compared to a loss of 0.19 billion yen in the same period of the previous year).

The revenue of the Mobility business increased by 14.0% year-on-year to 5.441 billion yen, and the segment profit increased by 20.8% to 0.115 billion yen. In the domestic automobile sector, there was an increase in production numbers of model change products for passenger vehicles, the main vehicle type, leading to increased sales. In the overseas automobile sector, despite a decrease in sales on a local currency basis compared to the same period of the previous year at ECHOAUTOPARTS(THAILAND) CO., LTD. in Thailand, there was an increase in sales when converted to Japanese yen due to exchange rate effects.

The revenue of the Living Space business decreased by 8.2% to 2.091 billion yen, while segment profit increased by 5.7% to 0.234 billion yen. In the domestic residential equipment sector, the effects of soaring housing material costs and price corrections in the market of major customers continued, leading to a general decline in demand for residential purposes. As a result, there was a decrease in sales mainly focusing on washbasin vanities. In the office air conditioning components department, there was an increase in sales due to new orders being received. Sales decreased in the overseas refrigeration components department at THAI KODAMA CO., LTD. in Thailand and THAI KODAMA (VIETNAM) CO., LTD. in Vietnam, due to sluggish demand and other factors. On the other hand, there was an improvement in profitability due to price adjustments of various expenses and efforts to enhance quality.

The revenue of the Advanced & Essential business decreased by 17.4% to 0.247 billion yen, and segment profit decreased by 96.1% to 0.002 billion yen. The business for game software package continued to experience reduced demand since the first quarter, leading to a decrease in sales. Additionally, in the new composite material product business, there were some production delays causing a decrease in sales. Although the profitability of the products in question was maintained, an overall decrease was seen compared to the same quarter of the previous year due to a one-time impact from changes in the domestic and foreign production ratio within the current period.

Regarding the full-year consolidated performance forecast for the fiscal year ending March 2025, the company is maintaining the initial plan with revenue expected to increase by 4.8% to 15.4 billion yen, operating profit to increase by 178.1% to 0.46 billion yen, ordinary profit to increase by 1,216.3% to 0.32 billion yen, and net income attributable to the parent company's shareholders to reach 0.2 billion yen.