NICHIA STEEL WORKS, LTD.
5658・Standard Market・Iron & Steel
Ordinary Wire Rod Products
A foundational segment manufacturing and selling galvanized iron wire products for public civil engineering and fencing applications
| Period | Current | Previous | Change |
|---|---|---|---|
| Net Sales | ¥9,188 million | ¥9,396 million | ↓ |
| Operating Profit | ¥499 million | ¥313 million | ↑ |
| Segment Assets | ¥8,388 million | ¥8,576 million | ↓ |
| Depreciation | ¥402 million | ¥378 million | ↑ |
Business Details
Manufactures and sells various galvanized iron wires made from ordinary wire rod, as well as processed products using galvanized iron wire as the base wire. Main applications include gabions and rockfall protection netting for public civil engineering, and various fences for both public and private use. The segment focuses on the two major demand areas of fencing and civil engineering, and develops high-value-added product groups leveraging galvanizing and forming technologies. In FY2026 (ending March 2026), despite continued declines in sales volume, improvements in selling prices were effective, resulting in a significant increase in operating profit.
Recent Overview
Sales declined due to lower sales volume, but improved selling prices led to a significant 59.4% year-on-year increase in operating profit
Net sales for FY2026 (ending March 2026) were ¥9,188 million, a decrease of ¥207 million (-2.2%) year on year. While the company advanced selling price improvements in response to rising costs such as labor and logistics expenses, sales volume declined due to continued weakness in demand for fencing and civil engineering applications. On the profit side, profit-boosting factors such as price improvements outweighed profit-reducing factors such as the decline in sales volume, resulting in operating profit of ¥499 million, a significant increase of ¥185 million (59.4%) year on year. The two major demand areas of fencing and civil engineering continue to show conditions in which an early recovery is difficult.
Key Products
Growth Drivers
- Promoting selling price improvements (price pass-through) in response to rising costs such as logistics and labor expenses
- Securing sales volume by capturing demand as a substitute for imported wire
- Developing new demand through high-value-added, differentiated products such as the reinforced earth wall product 'Hyper Pre-Mesh'
- Expanding sales in markets with high repeat business potential, such as agriculture, forestry, and fisheries, and manufacturing
- Improving profitability through self-help efforts such as production cost improvements and logistics efficiency
Risks
- Risk of continued weakness in the two major demand areas of fencing and civil engineering (early recovery difficult)
- Decline in sales volume (due to lower activity levels in demand industries)
- Profit pressure from rising costs such as labor, logistics, and auxiliary raw material expenses
- Intensifying competition with imports and market weakness due to overproduction by Chinese steel manufacturers
- Uncertainty in the economy and exchange rates stemming from the Trump administration's tariff and trade policies
Last updated: June 25, 2026