NOK lifted by strong sealing business performance

Tokyo – NOK Corp. has reported a 5.5% year-on-year increase in consolidated sales to Yen181.24 billion (€440 million) for the first quarter of fiscal year 2026, which started 1 April.

Operating income for the three months to end of June rose 9.3% to Yen7.65 billion, the Japanese group reported 6 Aug.

NOK attributed the increase in operating income primarily to higher sales as well as favourable foreign-exchange gains during the quarter.

The group’s Sealing business recorded a 7.8% year-on-year increase in sales to Yen98.5 billion, while operating income increased 47.5% to Yen9.64 billion.

Automotive sales declined slightly as production volumes at Japanese automakers decreased.

However, sales to general industrial machinery customers increased, driven mainly by higher demand from the construction machinery sector in Japan and China.

NOK said that, despite higher fixed costs including personnel expenses, the increase in sales and progress in price revision activities, including passing higher costs through to selling prices, contributed to the increase in operating income.

Electronic components business, meanwhile, reported 11.2% higher year-on-year to Yen81.10 billion but widened its operating loss to Yen2.23 billion, compared with a loss of Yen121 million in the prior-year quarter.

Sales benefited from foreign-exchange effects as well as an increase in actual sales volumes.

By application, sales increased in smartphones, automotive batteries and hard disk drives, NOK said.

Despite the increase in sales, higher fixed costs including personnel expenses and the appreciation of local currencies against the US dollar at Asian production bases resulted in a wider operating loss.

NOK’s ‘other business’ sales fell 77.8% year-on-year to Yen1.68 billion, while operating income declined 61.0% to Yen226 million.

NOK said the segment comparison reflects a reorganisation of businesses between segments from the first quarter.

The prior-year figures have therefore been reclassified to reflect the new segment structure.