Sanken Electric Co (6707) Q1 2025 earnings summary

Executive summary

• Net sales for Q1 FY2024 were ¥49,828 million, down 16.8% year-over-year due to declines in automotive and industrial machinery markets.

• Operating loss of ¥4,640 million and ordinary loss of ¥5,658 million, reversing prior year profits.

• Loss attributable to owners of parent was ¥2,690 million, compared to a profit of ¥2,229 million in Q1 FY2023.

• Comprehensive income fell 63.8% year-over-year to ¥6,933 million.

• Company is restructuring under the 2024 Medium-Term Management Plan, focusing on profitability and cost reduction.

Financial highlights

• Gross profit dropped to ¥13,621 million from ¥23,891 million year-over-year.

• Net sales by market: automotive down 10.5%, white goods down 1.9%, industrial machinery down 44.6%.

• Net sales by region: Japan down 7.8%, Asia down 9.9%, North America down 34.5%, Europe down 40.7%.

• Net sales by product: power module up 16.8%, power device down 24.2%, sensor down 25.1%.

• Net income per share was -¥111.40, compared to ¥92.35 in the prior year.

Outlook and guidance

• FY2024 consolidated financial forecast not yet determined due to pending impact assessment of Allegro MicroSystems, Inc. sale.

• Proceeds from Allegro share sale to be used for shareholder returns, growth investments, and debt reduction.