Suminoe cuts profit and dividend forecasts despite steady sales

The latest announcement is out from Suminoe Textile Co., Ltd. ( (JP:3501) ).

Suminoe Co., Ltd. revised its forecast for the fiscal year ending May 31, 2026, projecting net sales of ¥106 billion, slightly above its previous estimate, but now expects operating profit, ordinary profit, and profit attributable to owners of parent to fall significantly below prior targets. Management cited reduced production efficiency at North and Central American bases due to volatile automobile production plans and new customer orders, as well as sharply higher raw material costs linked to Middle East tensions and higher-than-planned income taxes, which are pressuring profitability.

Reflecting the weaker earnings outlook, the company cut its year-end dividend forecast from ¥21.50 to ¥18.50 per share, though the total annual dividend is expected to remain at ¥40.00 when adjusted for a prior stock split, matching the previous fiscal year. This signals Suminoe’s intent to balance diminished profits with a commitment to stable shareholder returns, while navigating cost pressures and operational disruptions in its automotive-related business lines.

The most recent analyst rating on (JP:3501) stock is a Hold with a Yen1429.00 price target. To see the full list of analyst forecasts on Suminoe Textile Co., Ltd. stock, see the JP:3501 Stock Forecast page.

More about Suminoe Textile Co., Ltd.

Suminoe Co., Ltd. is a Japan-based manufacturer in the textile industry, listed on the Tokyo Stock Exchange Prime Market under securities code 3501. The company supplies textile products with a notable exposure to the automotive sector, operating production bases in regions including North and Central America, and is focused on stable shareholder returns through dividends.

Average Trading Volume: 25,161

Technical Sentiment Signal: Buy

Current Market Cap: Yen19.68B

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