CKD (6407) Q3 2024 earnings summary

Executive summary

• 3Q FY2023 cumulative net sales and income declined YoY, while Automatic Machinery sales and orders improved; full-year earnings forecasts remain unchanged.

• 3Q cumulative net sales were ¥100.3 billion, down 17% YoY; operating income was ¥9.6 billion, down 41%.

Financial highlights

• Net sales fell ¥19.9 billion YoY to ¥100.3 billion; Components declined ¥21.3 billion to ¥88.4 billion, while Automatic Machinery rose ¥1.4 billion to ¥11.8 billion.

• Operating income was ¥9.6 billion, down ¥6.6 billion YoY; ordinary income was ¥9.7 billion, down ¥6.5 billion, and net income was ¥6.4 billion, down ¥4.8 billion.

• Lower sales reduced operating income by ¥6.2 billion and cost-rate changes by ¥1.1 billion; SG&A and exchange-rate fluctuations each contributed ¥0.4 billion.

Outlook and guidance

• FY2023 full-year forecasts remain unchanged: net sales ¥132.5 billion, operating income ¥11.4 billion, ordinary income ¥11.4 billion, and net income ¥7.6 billion.

• Forecast YoY declines: net sales 17%, operating income 46%, and net income 49%; projected operating margin is 8.6%, down 4.7 points.

• Automatic Machinery FY sales forecast is ¥17.0 billion (+9% YoY) and segment income ¥2.0 billion; Components forecast is ¥115.5 billion (-20%) and segment income ¥14.2 billion.

• Automatic Machinery FY orders forecast was raised to ¥20.0 billion from ¥18.0 billion; 2H forecast increased to ¥8.8 billion from ¥6.8 billion.

• Forecast exchange rate: ¥142 per US dollar for 2H and FY.