FINE SINTER CO., LTD.

Business Details

A business that manufactures and sells sintered parts with characteristics such as high strength, high precision, and wear resistance, using metal powder as raw material. Major customers are automobile manufacturers and parts manufacturers. The company operates globally with overseas manufacturing subsidiaries in Thailand, the United States, China, and Indonesia. It is the core segment, accounting for approximately 91% of the Group's consolidated sales. The company is also focusing on expanding Inverter Components for Hybrid Vehicles (Reactor Cores), and has begun production of new inverter components.

Recent Overview

Both sales and segment profit increased, but impairment losses of ¥2,191 million were recorded, including at AFS.

Full-year sales for FY2026 (ending March 2026) were ¥41,895 million (up 8.9% year on year), and segment profit was ¥2,943 million (up 32.4% year on year), representing increased sales and profit. This was driven by favorable sales of drivetrain parts at the second site of the Thai subsidiary, and solid orders and the start of production of new products for domestic hybrid vehicle inverter components. On the other hand, an impairment loss of ¥2,191 million was recorded, mainly at the U.S. subsidiary AFS (Ohio). At the Board of Directors meeting on April 28, 2026, a resolution was passed to discontinue AFS's business (scheduled for the end of March 2028), with production to be transferred to other sites.

Key Products

Growth Drivers

• Expansion of drivetrain parts sales at the second site of the Thai subsidiary
• Expansion of sales of electrification-related products through the start of production of new Inverter Components for Hybrid Vehicles (Reactor Cores)
• Improvement of profit structure through sales price optimization (price improvement for unprofitable products, pass-through of raw material costs, reflection of prior-year raw material price fluctuations in prices)
• Optimization of the global production system and fixed cost reduction through AFS business discontinuation and transfer to other sites
• Improved productivity and asset efficiency through reorganization of domestic sites
• Improved added value and profit margins through expanded handling of unit products in the magnetic materials field

Risks

• Risk of decreased demand for sintered parts for internal combustion engines and HEVs due to the accelerating shift to BEVs in the automotive industry
• Cost increase pressure due to persistently high raw material and energy prices
• Risk of decreased sales volume due to production stoppages or fluctuations at major customers
• Direct and indirect impact on North American operations from U.S. trade policy (Trump tariffs)
• Risk of additional losses in subsequent periods related to the AFS business discontinuation (impact amount currently under review)
• Foreign exchange fluctuation risk at overseas subsidiaries (Thailand, China, Indonesia)
• Cost increase due to review of the residual value of fixed assets at the Chinese consolidated subsidiary (Wuxi Seiko Sintered Alloy Co., Ltd.) (profit decrease of ¥408 million in the current period)