Obara Group (6877) Q3 2024 earnings summary

Executive summary

• Global economy showed moderate recovery, with strong US performance and a rebound in Europe, while Japan saw a recovery in capital investment and production despite sluggish consumer spending.

• Automotive sector maintained robust capital investment globally, supporting steady performance in welding equipment, while electronics faced weaker semiconductor demand.

• Consolidated sales for the nine months ended June 2024 were ¥40,841 million, down 1.0% year-over-year; operating income was ¥6,539 million, down 9.3%; ordinary income was ¥7,288 million, down 5.4%; net income attributable to shareholders was ¥4,793 million, down 12.5%.

Financial highlights

• Sales: ¥40,841 million (down 1.0% year-over-year).

• Operating income: ¥6,539 million (down 9.3% year-over-year).

• Ordinary income: ¥7,288 million (down 5.4% year-over-year).

• Net income attributable to shareholders: ¥4,793 million (down 12.5% year-over-year).

• EPS: ¥274.99 (down from ¥348.28 year-over-year).

Outlook and guidance

• Full-year forecast remains unchanged: sales ¥54,500 million (+1.3% year-over-year), operating income ¥9,000 million (−0.2%), ordinary income ¥9,600 million (+0.9%), net income attributable to shareholders ¥6,600 million (+8.5%), EPS ¥378.67.

• No revision to previously announced guidance.