Harmonic Drive Systems (6324) Q3 2024 earnings summary

Executive summary

• Net sales for the nine months ended December 31, 2024, decreased 3.7% year-over-year to ¥40,363 million, with a net loss attributable to owners of parent of ¥354 million, reflecting sluggish market conditions and geopolitical risks.

• Operating loss was ¥336 million, compared to an operating profit of ¥661 million in the prior year period, despite cost innovation efforts.

• Comprehensive income dropped 90.8% year-over-year to ¥411 million, mainly due to lower operating profit and market conditions.

Financial highlights

• Gross profit margin declined as gross profit fell to ¥10,616 million from ¥12,294 million year-over-year.

• Ordinary loss was ¥78 million, compared to an ordinary profit of ¥765 million in the previous year.

• Basic earnings per share improved slightly to ¥(3.73) from ¥(4.23) year-over-year.

• Equity ratio increased to 67.1% from 66.6% at the previous fiscal year-end.

Outlook and guidance

• Full-year net sales forecast is ¥54,000 million, up 3.2% year-over-year, with profit attributable to owners of parent projected at ¥3,600 million and basic EPS of ¥37.90.

• No change to the previously announced financial results forecast; any revisions will be disclosed as needed.