Chofu Seisakusho (5946) Q3 2024 earnings summary

Executive summary

• Revenue for the nine months ended September 30, 2024, was ¥31,725 million, down 8.3% year-over-year, with significant declines in operating and net income due to lower sales and persistent high raw material costs.

• The company focused on expanding high-efficiency, energy-saving products and joined the Ministry of Economy, Trade and Industry's GX League for carbon neutrality.

Financial highlights

• Operating income fell 73.9% year-over-year to ¥538 million, and net income attributable to shareholders dropped 31.1% to ¥1,847 million.

• Gross profit margin declined due to high raw material and energy costs.

• EPS for the period was ¥54.42, down from ¥78.35 in the prior year.

• Comprehensive income was ¥2,452 million, a 54% decrease year-over-year.

Outlook and guidance

• Full-year revenue is forecast at ¥45,800 million, down 5.6% year-over-year, with operating income projected at ¥1,800 million and net income at ¥2,900 million, both significantly lower than the previous year.

• No changes to previously announced guidance.