NSK (6471) Q4 2024 earnings summary

Executive summary

• FY2024 continuing-operations sales rose 1.6% YoY to ¥788.9bn, while operating income fell 37.5% to ¥27.4bn and attributable net income fell 53.8% to ¥8.5bn.

• Automotive growth and yen depreciation supported sales, while weak industrial machinery demand sharply reduced earnings.

Financial highlights

• Sales were ¥788,867m (+1.6% YoY); operating income was ¥27,391m (-37.5%) and income before tax was ¥26,210m (-39.4%).

• Continuing-operations net income was ¥14,254m (-49.1%); attributable net income was ¥8,502m (-53.8%).

• Operating margin was 3.5%, versus 5.6% a year earlier; ROE was 1.3%, versus 3.0%.

Outlook and guidance

• FY2025 forecast: sales ¥820bn (+3.9%), operating income ¥36bn (+31.4%), pretax income ¥33.5bn (+27.8%) and attributable net income ¥19bn (+123.5%).

• Operating margin forecast is 4.4%, or 5.0% excluding ¥5bn of one-time European structural-reform expenses; assumed rates are ¥145/$, ¥155/€ and ¥20/CNY.

• Industrial demand recovery, particularly in semiconductor manufacturing equipment, is expected from H2; global automotive production is forecast to remain at the prior-year level. Planned capital expenditure is ¥60bn.