Kyowakogyosyo (5971) Q4 2024 earnings summary

Executive summary

• Revenue decreased by 17.0% year-over-year to ¥10,972 million due to lower demand in the construction machinery sector.

• Operating profit rose 2.1% year-over-year to ¥1,015 million, and net income attributable to shareholders increased 32.1% to ¥1,443 million.

• Despite higher raw material and labor costs, profit growth was achieved through price revisions and cost control.

Financial highlights

• Gross profit margin improved as operating profit and ordinary profit both increased year-over-year despite a significant sales decline.

• Net assets rose to ¥15,546 million, with an equity ratio of 86.8%.

• Cash and equivalents at year-end were ¥5,150 million, down ¥1,141 million from the previous year.

• Comprehensive income was ¥1,198 million, a 4.8% margin.

Outlook and guidance

• For the next fiscal year, revenue is forecast to decline 7.0% to ¥10,200 million, with operating profit expected to fall 23.2% and net income to drop 57.7%.

• The construction machinery market is expected to remain challenging due to continued production cuts.

• Dividend forecast remains stable at ¥80 per share.