NOK earnings fall on weaker sales; seal business remains bright spot

Tokyo – NOK Corp. has reported lower earnings for the first six months of the fiscal year ending 31 March 2026, as declining sales outweighed improved results in its core seal business.

For the six months to end of September, NOK posted net sales of Yen359.3 billion (€2 billion), down 8.7% year-on-year, the company reported 10 Nov.

Operating income declined 17.7% to Yen15.7 billion, while profit attributable to owners of the parent slipped 2.0% to Yen13.3 billion.

NOK’S seal unit delivered the strongest performance of the group, with sales up 1.3% year-on-year to Yen181.4 billion.

Segment operating income increased 14.6% to Yen12.8 billion, according to the Tokyo-based group.

NOK said seals revenue increased due to “steady sales” for automotive applications to non-Japanese customers in China.

Furthermore, the group witnessed "a sustained increase" in demand for general industrial machinery, particularly construction machinery.

The gains, it noted, were made despite the negative impact of a stronger yen.

Segment operating income improved on higher sales, price revision activities and lower variable costs including raw materials.

NOK’S electronics business remained under pressure as segment first-half sales dropped 17.7% to Yen162.5 billion, while operating income fell 66.5% year-on-year to Yen2.1 billion.

NOK linked the decline to lower volumes and lower demand mainly for automotive applications and smartphones. The appreciation of the yen also weighed on revenue.

Operating profit decreased due to “the decrease in net sales and an increase in fixed costs.”

NOK’s other businesses reported a 9.6% year-on-year decline in sales to Yen15.3 billion, as operating income fell 52.6% to Yen600 million.