Osaka Soda Q4: Core Earnings Drop 12% on Weak Demand

Osaka Soda Cos. core earnings slid 12% in the fourth quarter, dragged down by weaker demand for its industrial chemicals and electronic materials segments, the company said in its fiscal 2026 earnings presentation Wednesday.

Operating income for the three months ended March 31 came in at ¥4.1 billion ($37.2 million), down from ¥4.7 billion a year earlier. Revenue fell 3% to ¥32.8 billion, missing the company's own guidance range.

The chemicals segment, which accounts for about half of total sales, saw operating profit fall 9% as lower volumes in caustic soda and chlorine derivatives outpaced cost-cutting efforts. Electronic materials, the other main earnings driver, posted a 15% profit decline on weaker demand for semiconductor-grade chemicals, the company said.

Osaka Soda forecast full-year operating income of ¥17 billion for the fiscal year ending March 2027, roughly flat versus the just-completed year. That assumes a gradual recovery in electronics demand in the second half, with no improvement in the broader chemicals cycle before year-end.

The company cut its dividend to ¥60 per share from ¥65, the first reduction in four years.

Osaka Soda shares trade over-the-counter in the U.S. under the ticker DACLF. The stock has fallen 14% over the past 12 months, compared with a 3% gain in the S&P 500 chemicals index.