SAKURAI LTD.

Sakurai Manufacturing Co., Ltd. operates two businesses: the manufacture and sale of parts for automobiles, motorcycles, and general-purpose machines (Automotive Parts Manufacturing Business), and the manufacture and sale of special-purpose machine tools such as Tarex (Multi-Spindle Head-Exchange Special-Purpose Machine), double-spindle Rotary Milling Machines, and B-Trim (5-Axis Deburring Center) (Machine Tool Manufacturing Business). In addition to its domestic manufacturing sites (Funaoka Plant and Hosoe Plant), the company is a global group with a Vietnamese subsidiary, SAKURAI VIETNAM CO., LTD., and a US subsidiary, SAKURAI U.S.A., Co. Major customers include automotive and industrial machinery-related companies such as NACHI-TOKIWA CO., LTD. (22.8% of sales), Ahresty Corporation (14.5% of sales), and Honda Trading Corporation (10.8% of sales). Founded in 1950, the company reported consolidated net sales of ¥4,928 million for FY2026 (ending March 2026).

In the Automotive Parts Manufacturing Business, the company secures mass-production orders centered on highly difficult and precise engine-related parts, forming a stable revenue base. In the Machine Tool Manufacturing Business, the mass-production and prototyping technology cultivated through parts processing is applied to the development of special-purpose machine tools, and proposal-based sales are used to appeal to customers' cost benefits. The company enhances production efficiency through collaboration with its Vietnamese subsidiary, and also utilizes overseas sales channels through its U.S. subsidiary. Working capital is funded through internal funds and borrowings, while capital expenditures are financed through long-term borrowings.

For FY2026 (ending March 2026), the company recorded net sales of ¥4,928 million (down 0.7% year on year), operating profit of ¥141 million (down 13.4%), ordinary profit of ¥268 million (up 19.0%), and net income of ¥234 million (up 10.8%). The increase in ordinary profit and net income was due to the recording of extraordinary income items such as gain on sale of investment securities of ¥52 million and subsidy income of ¥19 million, as well as the contribution of ¥28 million in foreign exchange gains to non-operating income; operating profit from the core business itself declined. In the Automotive Parts Manufacturing Business, net sales fell 10.6% year on year due to a decrease in orders for General-Purpose Machine Parts and other items, while in the Machine Tool Manufacturing Business, net sales rose 42.3% year on year on increased orders for special-purpose machine tools, though the segment continued to post a segment loss of ¥118 million. As external factors, the structure in which persistently high raw material and energy prices, along with uncertainty over automotive-related demand stemming from US tariff policy, weigh on performance continues. Looking at the trend over the past five fiscal years (operating profit of ¥28 million in FY2022 → -¥417 million in FY2023 → -¥263 million in FY2024 → ¥164 million in FY2025 → ¥141 million in FY2026), profitability has not yet become firmly established, and the company forecasts an operating loss of ¥2 million for FY2027 (ending March 2027), indicating an anticipated return to the red.