Japanese printed circuit board (PCB) manufacturer CMK (TYO: 6958) reported a sharp drop in earnings for the April–June quarter, as low capacity utilization continued to weigh on profitability. Despite the weak results, the company maintained its full-year forecast.

According to the financial results released after the market closed on August 5, CMK's consolidated revenue edged down 0.4% year-on-year to ¥22.78 billion. While sales to major Japanese customers remained stable, weakness in the European market and declining orders from key international clients led to the revenue dip. Operating profit fell 79% to ¥160 million, and net profit plummeted 94% to just ¥80 million.

By application, automotive PCB sales—CMK's main business—dropped 1% to ¥19.5 billion. Sales of PCBs for communication devices, including smartphones, declined 27% to ¥100 million. Meanwhile, PCBs for other uses—including AV equipment, digital cameras, gaming consoles, and miscellaneous products—increased 4% to ¥3 billion.

By region, sales in Japan rose 2% to ¥13.7 billion, but operating profit dropped 71% to ¥160 million. In China, sales declined 11% to ¥4 billion, but operating profit surged 55% to ¥480 million. Southeast Asia sales grew 5% to ¥4 billion, though the region posted an operating loss of ¥130 million, compared to a ¥260 million profit a year earlier. In Europe and the U.S., sales declined 7% to ¥900 million, while operating profit rose 53% to ¥60 million.

CMK maintained its earnings guidance for the fiscal year ending March 2026, forecasting consolidated revenue to rise 0.5% year-on-year to ¥96 billion and operating profit to grow 5.1% to ¥4 billion. However, net profit is expected to fall 47.2% to ¥2 billion.