CTI Engineering Co (9621) Q3 2024 earnings summary

Executive summary

• Orders received, sales, operating income, and net income are progressing steadily, closely tracking the revised full-year forecast.

• Sales for the nine months ended September 30, 2024 rose 4.6% year-over-year to ¥72,197 million, with net income attributable to owners of the parent down 14.0% to ¥5,266 million.

• Orders received increased 0.5% year-over-year, reaching ¥77,228 million.

• Domestic business showed strong order intake and sales growth, while overseas business faced challenges from higher costs and sluggish construction markets in the UK and Australia.

• The business environment remains stable domestically, with continued public works spending and disaster prevention initiatives; Southeast Asia shows growth overseas.

Financial highlights

• Orders received: ¥77,228 million (+0.5% YoY); sales: ¥72,197 million (+4.6% YoY); operating income: ¥7,419 million (-11.0% YoY); net income: ¥5,266 million (-14.0% YoY).

• Operating income margin declined to 10.3% from 12.1% YoY.

• Gross profit increased to ¥21,425 million from ¥20,888 million year-over-year.

• Net assets rose to ¥58,965 million, up ¥3,871 million from the previous fiscal year-end.

• Progress rates vs. revised forecast: orders received 82.2%, sales 74.4%, operating income 77.3%, net income 76.3%.

Outlook and guidance

• No change to the revised full-year forecast: sales ¥97,000 million (+4.2% YoY), operating income ¥9,600 million (-4.1% YoY), net income ¥6,900 million (-8.4% YoY).

• Year-end dividend maintained at ¥150 per share.

• No revision to the previously announced financial results forecast.