DMG Mori (6141) Q3 2024 earnings summary

Executive summary

• Sales revenues for the nine months ended September 30, 2024, were JPY 388.0 bn, up 2.1% year-over-year, with operating profit at JPY 30.0 bn, down 15.9% year-over-year.

• Profit attributable to owners of the parent dropped sharply to JPY 0.6 bn, a 97.4% decrease year-over-year, mainly due to losses from discontinued operations in Russia.

• Orders received in the nine-month period totaled JPY 381.5 bn, down 4.5% year-over-year, with order price per unit rising and service/parts business orders up 7%.

• Regional order intake grew in the Americas (+7%) and Asia ex-China (+9%), but declined in Europe (-4%), Japan (-10%), and China (-32%).

• The company revised its full-year order forecast downward from JPY 530 bn to JPY 500 bn due to prolonged customer investment decisions.

Financial highlights

• Operating profit margin decreased to 7.7% from 9.4% year-over-year.

• Basic earnings per share fell to (4.89) yen from 172.95 yen year-over-year.

• Total assets increased to JPY 786.5 bn from JPY 765.8 bn at the previous year-end.

• Equity attributable to owners of the parent rose to JPY 301.8 bn, with the equity ratio improving to 38.4%.

• Cash and cash equivalents at period-end were JPY 30.8 bn, down from JPY 39.2 bn at the previous year-end.

Outlook and guidance

• Full-year 2024 sales revenue forecast is JPY 550.0 bn (+2.0% year-over-year), with operating profit forecast at JPY 44.0 bn (-20.5%) and profit attributable to owners of the parent at JPY 10.0 bn (-70.5%).

• Basic earnings per share for the year is projected at 58.76 yen.

• The company revised its operating profit and net profit forecasts downward from previous guidance.

• Exchange rates used for forecasts: JPY 150/USD, JPY 160/EUR.