Shima Seiki Mfg (6222) Q2 2025 earnings summary

Executive summary

• Net sales for FY 2024 2Q were ¥14,771 million, down 22.9% year-over-year, resulting in an operating loss of ¥1,938 million and a net loss attributable to owners of ¥2,124 million.

• All major regions and segments saw sales declines, except for glove and sock knitting machines and 'Other' segments, which grew.

• Weak demand in Asia, especially China and Bangladesh, and economic slowdowns in Europe and Turkey impacted results.

Financial highlights

• Net sales: ¥14,771 million (down 22.9% year-over-year).

• Operating income: loss of ¥1,938 million (compared to ¥367 million profit last year).

• Net income attributable to owners: loss of ¥2,124 million (compared to ¥368 million profit last year).

• Ordinary income: loss of ¥2,035 million (compared to ¥564 million profit last year).

• Net income per share: -¥61.56 (down from ¥10.68 last year).

Outlook and guidance

• Full-year forecast for FY2025/FY2024: net sales ¥44,000 million (+22.5%), operating income ¥1,500 million, net income ¥1,700 million.

• Outlook remains uncertain due to political instability in Bangladesh, global economic slowdown, and mild winter.

• Currency rate assumptions for March 2025: 140 JPY/USD, 150 JPY/EUR.