Nippon Carbon Co.,Ltd.

Business Details

Manufactures and sells artificial graphite electrodes, impervious graphite products, isotropic high-purity graphite products, graphite products for machinery, general-purpose carbon fiber and graphite fiber, resin-impregnated graphite fiber packing, flexible graphite sealing materials, and lithium-ion battery anode materials. The Company and its consolidated subsidiaries (Nippon Techno-Carbon Co., Ltd., Nippon Carbon Engineering Co., Ltd., and NTCM Co., Ltd.) handle material manufacturing and processing, while domestic and overseas consolidated subsidiaries (Carbon (Taiwan) Co., Ltd., Nippon Carbon Europe GmbH, NIPPON CARBON OF AMERICA, LLC, and Nippon Carbon Shanghai Co., Ltd.) handle sales. The equity-method affiliate Nippon Kornmeyer Carbon Group GmbH also participates in processing and sales.

Recent Overview

Net sales increased, but operating profit fell sharply by 34.6% due to higher manufacturing costs and trade policy impact

In the first quarter of FY2026 (ending March 2026) (January to March 2026), the Carbon Products segment secured higher net sales of ¥7,420 million (up 10.3% year on year). On the other hand, operating profit fell substantially to ¥522 million (down 34.6% year on year). In Fine Carbon Related Products, increased manufacturing costs associated with investment in expanded manufacturing capacity for the semiconductor-related market pressured profitability, while in Electrode Material Related Products, although sales volume increased, profitability declined against the backdrop of U.S. trade policy. The segment's overall operating margin fell to 7.0% from 11.9% in the same quarter of the previous year.

Key Products

Growth Drivers

• Increased sales volume of Electrode Material Related Products through capturing demand both domestically and overseas (Q1 FY2026, ending March 2026, net sales up 25.1% year on year to ¥2,602 million)
• Future improvement in production capacity through investment in expanded manufacturing facilities in anticipation of growing demand in the semiconductor-related market
• Promotion of profitability improvement measures based on the medium-term management policy "GO BEYOND 2030"
• Efforts to expand domestic and overseas market share and reduce manufacturing costs for Fine Carbon Related Products
• Commercialization of power semiconductor related products (positioned as a new business)

Risks

• Decline in profitability due to increased manufacturing costs associated with investment in expanded manufacturing facilities for the semiconductor-related market
• Impact on exports and profitability of Electrode Material Related Products due to fluctuations in U.S. trade policy
• Sluggish demand for Fine Carbon Related Products due to a slowdown in the power semiconductor market
• Fluctuations in the global economy due to foreign exchange risk and changes in trade policy in various countries
• Rising manufacturing costs due to persistently high raw material and energy prices
• Fire risk at production facilities (a fire loss of ¥803 million was recorded in the previous fiscal year)