SEC CARBON,LIMITED
5304・Standard Market・Glass & Ceramics Products
SEC CARBON,LIMITED (Single Segment: Carbon Products)
A single-segment company whose sole business is the manufacture and sale of carbon products
| Period | Current | Previous | Change |
|---|---|---|---|
| Cash flow from operating activities (full year) | ¥7,766 million | ¥4,548 million | ↑ |
| Depreciation and amortization (full year) | ¥2,048 million | ¥1,304 million | ↑ |
| Impairment loss (full year) | ¥6,063 million | ¥0 million | ↓ |
| Net income (loss) before income taxes and other adjustments (full year) | △¥423 million | ¥8,170 million | ↓ |
| Income taxes paid (full year) | △¥1,073 million | △¥4,142 million | ↑ |
| Cash and cash equivalents at end of period | ¥3,613 million | ¥5,070 million | ↓ |
| Increase (decrease) in accrued consumption taxes receivable (as corrected) | ¥799 million | △¥812 million | ↑ |
Business Details
Manufactures and sells Cathode Blocks for Aluminum Smelting, Artificial Graphite Electrodes, Special Carbon Products, and Fine Powder and Other Carbon Products. The main customer is Sumisho CRM Co., Ltd. (66.6% of net sales). Sales regions are broad, covering Japan, the Americas, Asia/Middle East, Europe, and other areas, while all tangible fixed assets are located domestically. Subsidiaries Toho Carbon Co., Ltd. and Hitemp Materials System Co., Ltd. handle domestic sales.
Recent Overview
In FY2026 (ending March 2026), the recording of an impairment loss of ¥6,063 million pushed the company into a net loss before income taxes and other adjustments
In FY2026 (ending March 2026) (the fiscal year under review), the recording of an impairment loss of ¥6,063 million weighed on results, leading to a net loss before income taxes and other adjustments of ¥423 million. On the other hand, cash flow from operating activities increased substantially to ¥7,766 million (up from ¥4,548 million in the prior period). Note that on June 19, 2026, a partial correction to the earnings report was announced, revising the increase (decrease) in accrued consumption taxes receivable in the statement of cash flows from ¥593 million to ¥799 million, and other items from ¥736 million to ¥530 million (with no change to the total operating cash flow of ¥7,766 million).
Key Products
Growth Drivers
- Recovery in sales of Cathode Blocks for Aluminum Smelting as inventory adjustments are resolved
- Growth investments (capacity expansion of buildings, machinery and equipment, etc.) based on the three-year medium-term management plan "Sustainable 2026: Toward Sustainable Growth"
- Increase in sales volume of Artificial Graphite Electrodes accompanying a recovery in crude steel production
- Contribution to non-operating income from dividends received, etc., accompanying an increase in investment securities
- Strengthened business collaboration through making Nippon Electrode Co., Ltd. an equity-method affiliate
Risks
- Risk of declining sales of cathode blocks due to slowing replacement demand and prolonged inventory adjustments at aluminum smelting companies
- Risk of sluggish sales volume of Artificial Graphite Electrodes due to continued weak domestic and overseas crude steel production
- Customer concentration risk due to sales concentration in Sumisho CRM Co., Ltd. (66.6% of net sales)
- Cost increase risk from rising prices of raw materials and other supplies due to yen depreciation
- Impact on demand and supply from geopolitical risks in Ukraine and the Middle East and from US trade policy
- Risk of impairment of fixed assets (an impairment loss of ¥6,063 million was recorded in FY2026 (ending March 2026))
Last updated: June 19, 2026