NORITAKE CO.,LIMITED

Business Details

Manufactures and sells Grinding Wheels (Custom-made and general-purpose), Diamond Tools & CBN Tools, General-purpose Grinding Wheels (Cutting/Offset Wheels, etc.), Coated Abrasives, Grinding Fluids, and other products. Main customers are in the automotive, steel, and bearing industries, with sales networks both domestically and overseas. In FY2026 (ending March 2026), revenue was ¥56,385 million, accounting for approximately 39.5% of consolidated revenue, making it the largest segment. Manufacturing is handled by the Company and its domestic and overseas subsidiaries and affiliates, while overseas subsidiaries such as Noritake U.S.A., Inc. (United States) handle sales.

Recent Overview

Revenue declined slightly and operating profit fell 12.1% year on year amid headwinds from tariffs, exchange rates, and weak demand

In FY2026 (ending March 2026), the Industrial Materials & Equipment segment recorded revenue of ¥56,385 million (down 0.1% year on year) and operating profit of ¥1,605 million (down 12.1% year on year). Domestic custom-made products saw some recovery in the bearing industry, but demand from the automotive and steel sectors remained sluggish. Overseas, sales declined due to the combined effects of U.S. tariff policy in North America, inventory adjustments among steel-sector customers in China, and an economic slowdown in Southeast Asia. On the other hand, sales to the electronics/semiconductor sector increased in Japan and China. Coated Abrasives remained solid in Japan and Asia. Foreign exchange effects (weaker USD, stronger Thai baht) also weighed on operating profit. For FY2027 (ending March 2027), the Company plans revenue of ¥58.0 billion (unit basis per supplementary materials: billion yen) and operating profit of ¥1.7 billion, and will work on reorganizing its business structure by market and improving earnings.

Key Products

Growth Drivers

• Expanded sales of custom-made grinding wheels for the electronics/semiconductor sector (continued revenue growth in Japan and China)
• Continued solid demand for Coated Abrasives in Japan and Asia
• Improved earnings structure through business reorganization from product-based to market-based (growth-area-based) segmentation
• Development of new products, expansion of sales channels, and establishment of increased production capacity for growth areas, mainly in electronics
• Strengthened competitiveness through reorganization and upgrading of general-purpose product manufacturing structure in Japan and Thailand
• Upgrading of domestic and overseas sales bases and renewal of sales and manufacturing systems

Risks

• Decline in domestic custom-made product demand due to production slowdowns in the automotive, steel, and bearing industries
• Decline in sales to the North American automotive and bearing sectors due to the impact of U.S. tariff policy
• Pressure on earnings from overseas general-purpose grinding wheels due to foreign exchange risk such as a stronger Thai baht
• Risk of inventory adjustments among customers in the Chinese steel sector
• Risk of demand decline due to economic slowdown in the Southeast Asian automotive and bearing industries
• Risk of delays in progress of earnings improvement measures (price optimization, use of OEM, cost reduction, etc.)