Aichi Steel (5482) Q4 2024 earnings summary

Executive summary

• FY2024 revenue reached a record ¥2,965億, up 4% YoY; operating income rose to ¥103億 and attributable net income to ¥65億.

• FY2025 guidance calls for revenue of ¥3,000億, up 1%, but operating income of ¥70億 and net income of ¥37億, down 32% and 43%, respectively.

Financial highlights

• Revenue increased ¥113億 YoY; operating income increased ¥71億, while attributable net income increased ¥49億 to ¥65億.

• Versus the prior forecast, revenue was ¥34億 lower, while operating income exceeded guidance by ¥16億; higher selling prices, lower purchased-input costs, inventory/cost savings and overseas subsidiaries offset lower-than-planned volumes.

• Consolidated sales volume was 977 thousand tonnes, down 1% YoY; FY2025 volume is forecast at 997 thousand tonnes, up 2%.

Outlook and guidance

• FY2025 revenue is forecast at a record ¥3,000億; operating income is forecast at ¥70億 and attributable net income at ¥37億.

• Forecast operating income declines ¥33億 YoY as selling-price reductions and higher purchased-input costs outweigh volume gains and factory cost reductions.

• FY2025 assumptions include higher scrap, purchased billet and energy costs, lower alloy prices, and USD/JPY assumptions of ¥145 in H1 and ¥141 in H2.

• Management targets adjusted, underlying operating-profit growth excluding slide-gap effects and one-time impairment impacts, alongside reduced earnings volatility.