NTN CORPORATION
6472・Prime Market・Machinery
Japan
Core segment responsible for domestic manufacturing and sales for the NTN Group
| Period | Current | Previous | Change |
|---|---|---|---|
| Net sales (total including intersegment sales) | ¥352,161 million | ¥354,480 million | ↓ |
| Sales to external customers | ¥216,392 million | ¥215,245 million | ↑ |
| Operating income (segment profit) | ¥9,192 million | ¥11,207 million | ↓ |
| Operating margin | 2.6% | 3.2% | ↓ |
| Depreciation and amortization | ¥16,327 million | ¥16,537 million | ↓ |
| Increase in property, plant and equipment and intangible assets | ¥15,922 million | ¥17,725 million | ↓ |
| Impairment loss | ¥4,990 million | ¥5,733 million | ↓ |
Business Details
Centered on NTN Corporation (head office), this segment is responsible for the domestic manufacturing and sales of Bearing Products and CVJ & Axle Products. It supplies products to three markets—the aftermarket, industrial machinery OEMs, and automotive OEMs—and also handles internal transfers (supply of semi-finished products) to overseas segments. Part of domestic manufacturing is outsourced to domestic manufacturing affiliates, and sales are conducted mainly through direct sales as well as through domestic sales affiliates. The segment has the Wakayama Plant, NTN Mie Plant, and other facilities as production bases for the entire group.
Recent Overview
Operating income down 18.0% YoY due to lower sales volume; impairment loss narrowed
In the Japan segment for FY2026 (ending March 2026), although there was an effect from price pass-through, the decline in customer demand from automotive OEMs in the CVJ & Axle business weighed on results, with segment net sales of ¥352,161 million (down 0.7% year on year) and operating income of ¥9,192 million (down 18.0% year on year). Meanwhile, impairment loss narrowed to ¥4,990 million from ¥5,733 million in the prior period. Business restructuring loss attributable to the Japan region was also limited to ¥339 million. As a subsequent event, on May 12, 2026, the company entered into a basic agreement with NSK Ltd. to establish a joint holding company through a business integration, with the holding company scheduled to be established in October 2027.
Key Products
Growth Drivers
- Improving profitability through continued price pass-through
- Securing stable earnings by strengthening supply to the aftermarket
- Focused investment in expanding industrial machinery OEM sectors (machine tools, motors, aerospace)
- Expanded sales of high-value-added products through the start of mass production of bearings for electrification/EV applications
- Scale expansion, cost efficiency improvement, and enhanced international competitiveness through business integration with NSK (holding company establishment planned for October 2027)
- Reduction of fixed costs through the implementation of business structure reforms centered on production reorganization
Risks
- Risk of continued sluggish customer demand from automotive OEMs (slowing EV shift and delayed demand recovery both domestically and overseas)
- Risk of increased fixed cost burden due to reduced sales volume
- Risk of additional business restructuring losses and impairment losses associated with production reorganization (impairment loss of ¥4,990 million recorded in the Japan segment in FY2026 as well)
- Risk of spillover effects on the automotive industry from US trade policy (tariff increases)
- Structural risk of declining demand for bearings for internal combustion engine (ICE) vehicles
- Risk of integration costs and uncertainty in the business integration process with NSK (competition law compliance, share transfer ratio negotiations, etc.)
Last updated: June 17, 2026