CKD (6407) Q1 2024 earnings summary

Executive summary

• 1Q FY2023 net sales and income declined YoY; net sales fell 13% to ¥33.0 billion and operating income fell 37% to ¥2.9 billion.

• FY2023 earnings forecasts announced May 12, 2023 remain unchanged, with full-year net sales forecast at ¥142.0 billion and operating income at ¥14.5 billion.

Financial highlights

• Net sales ¥33.0 billion, down ¥5.0 billion YoY; operating income ¥2.9 billion, down ¥1.7 billion; net income ¥1.9 billion, down 40%.

• Ordinary income was ¥2.9 billion, down 37% YoY; operating income margin was 8.7%, down 3.4 percentage points.

• Total assets were ¥205.5 billion at end-June 2023, up ¥19.9 billion from end-March; total liabilities rose ¥19.1 billion to ¥85.0 billion.

Outlook and guidance

• FY2023 full-year forecasts remain unchanged: net sales ¥142.0 billion (-11% YoY), operating income ¥14.5 billion (-32%), and net income ¥10.0 billion (-32%).

• Full-year segment forecasts: Automatic Machinery net sales ¥17.0 billion (+9% YoY) and segment income ¥2.0 billion; Components net sales ¥125.0 billion (-13%) and segment income ¥17.0 billion (-28%).

• Automatic Machinery orders forecast at ¥9.0 billion for 1H and ¥17.5 billion for FY2023; both forecasts remain unchanged from May 12, 2023.