OKAMOTO INDUSTRIES, INC.
5122・Prime Market・Rubber Products
Industrial Products
Core segment selling plastic resin-based products to processing companies
| Period | Current | Previous | Change |
|---|---|---|---|
| Net sales (external customers, full year) | ¥75,756 million | ¥74,628 million | ↑ |
| Segment profit (full year) | ¥513 million | ¥1,338 million | ↓ |
| Segment assets (fiscal year-end) | ¥48,145 million | ¥49,318 million | ↓ |
| Depreciation and amortization (full year) | ¥1,245 million | ¥1,194 million | ↑ |
| Increase in property, plant and equipment and intangible assets (full year) | ¥3,314 million | ¥2,210 million | ↑ |
| Impairment losses (full year) | ¥1,435 million | ¥908 million | ↓ |
Business Details
Manufactures and sells Plastic Film (General, Industrial, Building Materials, Multilayer, Agricultural), Wallpaper, Automotive Interior Materials, Flexible Containers, Adhesive Tape / Industrial Tape, Food Hygiene Products (Wrap, Gloves, Pichit), and Abrasive Cloth & Paper, etc. Primary customers are domestic and overseas processing companies, with sales deployed across Japan, North America, Asia and other regions. As the core segment accounting for approximately 70% of consolidated net sales, it supplies a broad range of high-functionality products based mainly on plastic resins to a wide range of industries.
Recent Overview
Net sales up 1.5% year on year, but segment profit fell sharply by 61.6%
In the Industrial Products segment for FY2026 (ending March 2026), net sales came to ¥75,756 million (up 1.5% year on year), securing a slight increase, while segment profit fell sharply to ¥513 million (down 61.6% year on year). The main causes of the profit decline were the impact of yen appreciation (approximately ¥3 per dollar year on year), the surge in flame retardant (antimony) prices stemming from China's rare metal export controls, and the recording of impairment losses of ¥1,435 million (versus ¥908 million in the prior year). Automotive Interior Materials sales declined due to reduced production in North America and the discontinuation of mass-production launches. On the other hand, the company actively carried out capital investments aimed at future business expansion (increase in fixed assets of ¥3,314 million), including the completion of the new Okayama plant and the start-up of labor-saving equipment.
Key Products
Growth Drivers
- Solid trend in semiconductor-related demand for industrial-use film
- Solid demand for and increased sales of building materials film (for flooring and steel sheet applications)
- Effect of price revisions and expanded sales of high-value-added products for agricultural film
- Solid trend in orders for multilayer film for food packaging and industrial materials applications
- New adoption of commercial wrap by supermarkets and school meal service providers
- Expansion of Pichit products into retail meat applications and solid performance in the food service sector
- Strengthening of the Western Japan production and logistics base through the new Okayama plant (completed 2025)
- Efficiency improvements in raw material procurement, production management, and inventory management through introduction of new core IT systems
- Cost reduction and improved production efficiency through factory automation investment (operation of labor-saving equipment)
Risks
- Continued yen appreciation (impact of approximately ¥3 per dollar year on year directly affecting net sales and operating profit)
- Continued surge in flame retardant (antimony) prices stemming from China's rare metal export controls
- Decreased demand due to the slowdown in the Chinese economy (spillover effects on Automotive Interior Materials, etc.)
- Impact on the Automotive Interior Materials business from production cuts and discontinued mass-production launches by North American automakers
- Impact on the Automotive Interior Materials business from uncertainty in US trade policy
- Continued decline in Wallpaper segment sales due to sluggish new housing starts
- Continued high level of impairment losses (¥1,435 million recorded in FY2026 (ending March 2026))
- Sluggish sales and intensifying competition in electrical materials tape, etc., for overseas markets
- Decreased demand for semiconductor-related abrasive cloth and paper, and shrinking OA equipment components market
- Impact on energy and raw material procurement costs from instability in the situation in Iran
Last updated: June 24, 2026