Orthopedic implant maker Nihon M.D.M. (7600) cut its forecast for the fiscal year ending March 2027 to a net loss of ¥2.5 billion from a ¥60 million profit and scrapped its year-end dividend, previously planned at ¥17 a share.
The company now expects sales of ¥21.7 billion, down from ¥25.37 billion forecast earlier, an operating loss of ¥1.5 billion versus a ¥430 million profit, and an ordinary loss of ¥1.75 billion versus a ¥140 million profit. Loss per share is projected at ¥94.86.
For the April-September half, sales fell 10.1% to ¥10.44 billion. The company posted an operating loss of ¥1.04 billion, compared with a ¥208 million profit a year earlier, and a net loss of ¥1.75 billion, wider than the ¥330 million loss it had forecast in May.
In Japan, fewer business opportunities at some medical institutions and decisions not to adopt its products hurt artificial joint sales. In the U.S., knee implant sales dropped after earlier delivery delays cost it some existing customers and its products lost relative competitiveness. The cost-of-sales ratio rose to 44.4% from 39.5%, reflecting higher fixed manufacturing costs at its U.S. unit and a weaker yen raising import costs. The company booked a ¥629 million tax adjustment after reversing deferred tax assets at the U.S. subsidiary.
A new product launch planned in the U.S. for the second half is expected to be delayed. The revised forecast includes about ¥280 million in one-time costs such as retirement-related expenses tied to headcount cuts at the U.S. unit.
The company said it expects significantly negative free cash flow and will prioritize liquidity, aiming to resume dividends as early as possible.
Next: The company plans to file its semiannual report and hold a results briefing for institutional investors and analysts on Nov. 13, 2026.
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