Japan: Taiheiyo Cement reported sales of US$5.7bn in the 2026 financial year, ending 31 March 2026. Operating profit fell by 4% year-on-year to US$472m and net profit dropped by 56% to US$161m. The company said that the decline was due to impairment losses at Taiheiyo Cement Philippines. Domestic cement demand in Japan fell by 7% year-on-year to 30.5Mt, and the group’s domestic cement sales volumes declined by 9% to 11.9Mt. Cement exports increased by 10% to 3.32Mt. It said that demand was supported by countermeasure construction for ‘national resilience’, projects related to defence and urban development and construction related to the Linear Chuo Shinkansen. However, demand was impacted by ‘soaring’ construction costs, a decrease of shipments on Saturdays due to the spread of the five-day working week at construction sites, and a ‘chronic’ shortage of workers.
The company said that the Japanese economy, while showing some impact from US trade policies, maintained a gradual recovery trend throughout the year, supported by solid public investment and a rebound in customer spending. However, rising geopolitical risks, such as the escalating situation in the Middle East, created ‘uncertainty’ about the outlook of the economy.
