Tsubakimoto Chain (6371) Q1 2025 earnings summary

Executive summary

• First quarter FY2025 saw a 1.7% decline in sales and a 19.8% drop in operating income year-over-year, mainly due to a stronger yen and increased company-wide expenses.

• Net income decreased by 29.6% compared to the same period last year.

• Net sales rose 7.3% year-over-year to ¥66,455 million for the quarter ended June 30, 2024, with operating profit up 5.4% to ¥4,089 million and net income attributable to owners of parent surging 98.1% to ¥6,383 million.

• Orders received increased 2.6% year-over-year to ¥66,486 million, reflecting moderate global economic recovery despite stagnation in China and a flat Japanese economy.

Financial highlights

• Net sales for Q1 FY2025 were ¥65,317 million, down from ¥66,455 million in Q1 FY2024.

• Operating income fell to ¥3,280 million from ¥4,089 million, with the operating margin dropping from 6.2% to 5.0%.

• Ordinary income decreased by 28.1% to ¥4,354 million.

• Net income was ¥4,496 million, down from ¥6,383 million year-over-year.

• Ordinary profit increased 10.3% year-over-year to ¥6,058 million.

Outlook and guidance

• Full-year FY2025 forecast remains unchanged: sales expected to rise 3.9% year-over-year to ¥290,000 million, but operating income projected to decrease 5.9% to ¥21,500 million.

• Net income for the year is forecast at ¥20,000 million, a 9.6% decrease year-over-year.

• Segment forecasts anticipate sales growth in all businesses except "Other," with notable operating income growth in Materials Handling.

• Full-year net sales forecast at ¥280,000 million, with profit attributable to owners of parent projected at ¥23,000 million and EPS at ¥252.64 (reflecting stock split).

• Main exchange rates revised to 1 USD = 150 JPY and 1 EUR = 160 JPY for FY2024.