HANWA CO., LTD.
8078・Prime Market・Wholesale Trade
Steel Business
Hanwa's core segment. Handles domestic and overseas sales of bar steel, steel plate, steel pipe, etc., as well as processing and storage.
| Period | Current | Previous | Change |
|---|---|---|---|
| Segment sales (including internal, FY2026 (ending March 2026)) | ¥1,071,913 million | ¥1,155,245 million | ↓ |
| Segment profit (FY2026 (ending March 2026)) | ¥38,707 million | ¥33,130 million | ↑ |
| Segment assets (FY2026 (ending March 2026)) | ¥542,029 million | ¥542,535 million | — |
| Depreciation (FY2026 (ending March 2026)) | ¥5,875 million | ¥6,282 million | ↓ |
| Increase in property, plant and equipment and intangible assets (FY2026 (ending March 2026), post-correction) | ¥3,734 million | ¥5,502 million | ↓ |
| Equity in earnings of affiliates (FY2026 (ending March 2026)) | ¥2,673 million | — | ↑ |
| Interest expense (FY2026 (ending March 2026)) | ¥4,982 million | — | — |
Business Details
This segment focuses primarily on sales of bar steel, construction works, steel plate, special steel, wire rod, and steel pipe, and also provides processing and storage services. Domestically, the business has shifted from over-the-counter sales to distributors toward the construction field, while overseas the company operates steel service centers in Mexico, Indonesia, Malaysia, Thailand, China, Vietnam, and elsewhere. With numerous consolidated subsidiaries and equity-method affiliates both in Japan and abroad, this is the largest segment, accounting for approximately 45% of consolidated group sales.
Recent Overview
Sales decreased year on year, but segment profit increased. The corrected earnings report revised downward the increase in fixed assets.
In FY2026 (ending March 2026), Steel Business segment sales (including internal transactions) decreased approximately 7.2% year on year to ¥1,071,913 million, while segment profit increased approximately 16.8% year on year to ¥38,707 million, reflecting improved profitability. In the corrected earnings report dated June 18, 2026, the increase in property, plant and equipment and intangible assets within the segment information was revised downward from ¥4,454 million (pre-correction) to ¥3,734 million. There is no impact on the consolidated statements of income, balance sheets, or cash flow statements.
Key Products
Growth Drivers
- Steady demand in the domestic construction field (construction materials sales support profit)
- Improved profitability at overseas steel service centers (expansion of local production-for-local-consumption business, primarily in Southeast Asia)
- Promotion of high-value-added sales through nationwide rollout of the "Sokoka" (immediate delivery, small-lot handling, processing) strategy
- Cost efficiency through effective utilization of group companies' assets and logistics network
- Expansion of overseas handling volume toward the medium-term management plan's target of 17 million tons in consolidated steel handling weight
Risks
- Risk of profit decline due to falling prices of various steel products
- Structural contraction in domestic steel demand (shrinking over-the-counter distributor sales market)
- Foreign exchange risk (affecting the performance and translation of overseas subsidiaries)
- Counterparty credit risk (bad debt risk associated with credit sales and usance transactions)
- Impact of segment classification changes (reduced comparability due to the transfer of COSMO STEEL HOLDINGS LTD. to Overseas Sales Subsidiaries)
Last updated: June 19, 2026