SUGIMOTO & CO., LTD.
9932・Prime Market・Wholesale Trade
Eastern
A region-focused sales segment for machine tools and measuring instruments based in the Tokyo metropolitan area
| Period | Current | Previous | Change |
|---|---|---|---|
| Net sales (FY2026, full year) | ¥11,393 million | ¥11,751 million | ↓ |
| Segment profit (FY2026, full year) | ¥380 million | ¥528 million | ↓ |
| Net sales YoY change | -3.0% | — | ↓ |
| Segment profit YoY change | -27.9% | — | ↓ |
| Depreciation (FY2026, full year) | ¥140 million | ¥85 million | ↑ |
| Goodwill amortization (FY2026, full year) | ¥16 million | ¥16 million | — |
| Impairment loss (FY2026, full year) | ¥— million | ¥33 million | ↓ |
Business Details
A regionally focused sales segment centered on Tokyo, operating multiple sales offices including Omori, Kawasaki, and Tsuchiura. It sells measuring tools, machine tools, machinery and equipment, and pneumatic/hydraulic equipment to manufacturing customers. It accounts for approximately 23% of consolidated group net sales (FY2026, ending March 2026). Given the large market size and low market share in this region, it is positioned as a priority area for allocation of management resources. While demand related to semiconductor materials and manufacturing equipment for AI servers remained solid, capital investment restraint continued in the steel, construction, and machine tool sectors.
Recent Overview
Demand for AI server applications remained solid, but weakness in steel, construction, and machine tools led to declines in both sales and profit
For the full year of FY2026 (ending March 2026), the Eastern segment posted net sales of ¥11,393 million (down 3.0% year on year) and segment profit of ¥380 million (down 27.9% year on year), representing lower sales and profit. Demand related to semiconductor materials and manufacturing equipment, centered on AI servers, remained solid, and equipment investment projects continued, but cost increases and the effects of inventory adjustments and demand slowdown persisted in the steel, construction, machine tool, consumer electronics, and EV-related fields, resulting in a subdued performance for the segment overall. In addition, depreciation increased significantly from ¥85 million in the prior period to ¥140 million, weighing on profit.
Key Products
Growth Drivers
- Solid trend in demand related to semiconductor materials and manufacturing equipment for AI servers
- Increase in equipment repair and replacement projects among major customers
- Policy of prioritizing allocation of management resources to the Eastern region, where market share remains low
- Expansion of the customer base into industries less affected by parts supply constraints, beyond traditional key customer industries
- Launch of DX product sales and provision of DX consulting through the capital and business alliance with INDUSTRIAL-X
Risks
- Continued investment restraint and demand stagnation in the steel, construction, and machine tool sectors
- Prolonged inventory adjustment in consumer electronics
- Impact of rising material costs due to rare earth export restrictions
- Restraint in capital investment among export-related industries such as PCs, construction machinery, agricultural machinery, and automobiles, triggered by U.S. reciprocal tariffs
- Profit pressure from rising personnel expenses and increased depreciation related to the head office building and new core system (depreciation increased approximately ¥65 million year on year)
Last updated: June 15, 2026