Sumco (3436) Q4 2023 earnings summary

Executive summary

• FY2023 net sales were ¥425,941 million, operating income ¥73,080 million and net income attributable to owners of the parent ¥63,884 million, as silicon wafer demand weakened.

• Demand recovery was not expected in Q1 FY2024; guidance called for net sales of ¥87,000 million and operating income of ¥4,500 million.

Financial highlights

• Net sales declined 3.4% YoY to ¥425,941 million; operating income fell 33.4% to ¥73,080 million.

• Ordinary income fell 34.8% YoY to ¥72,627 million; net income attributable to owners of the parent declined 9.0% to ¥63,884 million.

• Gross profit was ¥108,251 million versus ¥143,354 million; SG&A expenses were ¥35,170 million versus ¥33,671 million.

• Total assets rose ¥180,531 million YoY to ¥1,073,087 million; total equity increased ¥44,043 million to ¥635,527 million.

Outlook and guidance

• Q1 FY2024 forecast: net sales ¥87,000 million, operating income ¥4,500 million, ordinary income ¥4,000 million, net income ¥2,000 million and EPS ¥5.72.

• Forecast assumes ¥145 per US dollar; customer production adjustments and wafer inventory drawdown were expected to persist, with no demand recovery foreseen in Q1.

• Full-year and half-year forecasts were considered difficult amid rapid industry changes; guidance is issued for the forthcoming quarter only.