NITCHITSU CO.,LTD.
7021・Standard Market・Machinery
Machinery-related Business
Nittetsu Chatetsu's largest segment, centered on marine equipment and industrial machinery
| Period | Current | Previous | Change |
|---|---|---|---|
| Segment Net Sales | ¥6,492 million | ¥6,523 million | ↓ |
| Segment Operating Profit | ¥108 million | ¥212 million | ↓ |
| Segment Assets | ¥7,706 million | ¥7,836 million | ↓ |
| Depreciation | ¥450 million | ¥354 million | ↑ |
| Increase in Tangible and Intangible Fixed Assets (Capital Expenditure) | ¥688 million | ¥754 million | ↓ |
Business Details
Centered on the design and manufacture of marine equipment (hatch covers and hull blocks for bulk carriers), this segment also handles general industrial machinery such as air preheaters, manufacture of Plant-related Equipment & Construction, and installation, construction, and supervision of machinery and equipment. The industrial equipment division captures replacement investment demand related to heavy electrical and steelmaking machinery, while also winning orders in new fields such as offshore wind power. With the Matsuura Plant in Nagasaki Prefecture as its main production base, this is the core segment accounting for approximately 69% of group net sales.
Recent Overview
Marine equipment remained solid, but the drop-off of a large construction project and unprofitable projects caused segment operating profit to decline 49.1%
In FY2026 (ending March 2026), the Machinery-related Business posted net sales of ¥6,492 million (down 0.5% year on year) and operating profit of ¥108 million (down 49.1% year on year). While the marine equipment division saw hatch covers post a substantial increase in revenue and hull blocks also progressed favorably through the capture of spot construction work, the construction division saw a significant decline in revenue due to the drop-off of a large-scale project from the prior period. The occurrence of unprofitable projects in the construction and industrial equipment divisions, increased transportation costs, and increased expenses associated with the installation of a new automated steel processing line weighed on profit. Renovation costs associated with the aging of the Matsuura Plant are also expected to continue to be incurred.
Key Products
Growth Drivers
- Domestic shipyards have accumulated a substantial backlog of construction work, securing construction volume for the near term
- Mid- to long-term increases in shipbuilding volume are expected through the development of public-private shipbuilding industry revitalization measures
- Continuation of replacement and conversion investment demand for existing equipment against a backdrop of rising power demand in the heavy electrical and steelmaking industries
- Winning new orders in the renewable energy field, including offshore wind power-related projects
- Promotion of production system restructuring and operational efficiency through the installation of a new automated steel processing line
Risks
- Profit pressure from the occurrence of unprofitable projects in the construction and industrial equipment divisions
- New orders from domestic shipyards remain sluggish, and the effects of shipbuilding industry revitalization measures are limited in the short term
- Renovation costs are expected to continue to be incurred due to the aging of the Matsuura Plant
- Increased costs associated with transportation expenses and the installation of a new automated steel processing line
- Exchange rate risk associated with fluctuations in raw material prices such as steel and foreign currency-denominated procurement
- Impairment risk on fixed assets (key assumptions include projected new shipbuilding order volume, fleet capacity, and completion volume)
Last updated: June 25, 2026