Kuraray Takes ¥25.6 Billion Impairment as Profit Undershoots Forecast but Keeps Dividend

An announcement from Kuraray Co ( (JP:3405) ) is now available.

Kuraray said it booked a ¥25.6 billion impairment loss on assets tied to its isoprene chemicals and styrenic thermoplastic elastomer operations for the year ended December 31, 2025, following a deterioration in the business environment and lower recoverable values. The company also recognized on a non-consolidated basis a ¥22.6 billion loss on valuation of shares in subsidiaries and a ¥13.1 billion allowance for loans to those subsidiaries, though these items are eliminated at the consolidated level.

Consolidated full-year results came in broadly in line with earlier forecasts for net sales, operating income and ordinary income, but net profit attributable to shareholders fell sharply short after the extraordinary losses, dropping to ¥7.47 billion and cutting earnings per share to ¥23.62. Despite the profit hit and weaker results versus the previous fiscal year, Kuraray is keeping its planned year-end dividend unchanged at ¥27 per share, signaling an intention to maintain shareholder returns while it absorbs the impact of the write-downs on its chemicals businesses.

The most recent analyst rating on (JP:3405) stock is a Sell with a Yen1540.00 price target. To see the full list of analyst forecasts on Kuraray Co stock, see the JP:3405 Stock Forecast page.

More about Kuraray Co

Kuraray Co., Ltd. is a Japan-based chemical manufacturer specializing in advanced materials, including isoprene chemicals and elastomer products, with a global customer base in industrial and specialty applications. The company operates across multiple segments where demand is sensitive to changes in the broader business environment and end-user industries.

Average Trading Volume: 1,725,676

Technical Sentiment Signal: Strong Buy

Current Market Cap: Yen543.3B

For a thorough assessment of 3405 stock, go to TipRanks’ Stock Analysis page.