Yokogawa Electric (6841) Q1 2024 earnings summary

Executive summary

• Sales rose 8.7% to ¥128.9B and operating income increased 13.4% to ¥14.8B, mainly due to foreign exchange gains.

• Ordinary profit rose 14.5% to ¥17.1B.

• Profit attributable to owners declined 59.3% YoY to ¥10.1B, impacted by a prior-year gain on sale of investment securities.

• The quarter marks the start of the "Growth for Sustainability 2028" medium-term plan.

Financial highlights

• Orders: ¥157.0B (+13.5% YoY); Sales: ¥128.9B (+8.7% YoY); Operating income: ¥14.8B (+13.4% YoY).

• Gross profit increased to ¥59.7B from ¥55.2B YoY.

• Basic EPS fell to ¥38.65 from ¥92.60 YoY.

• Total assets rose to ¥694.5B as of June 30, 2024.

• Net assets rose to ¥462.0B, with a shareholders' equity ratio of 65.1%.

Outlook and guidance

• FY24 forecasts unchanged: Orders ¥565.0B (+4.3%), Sales ¥563.0B (+4.2%), Operating income ¥75.0B (–4.8%).

• Profit attributable to owners projected at ¥49.0B (–20.6% YoY); EPS forecast at ¥188.35.

• Dividend forecast maintained at ¥58 per share for FY2024.

• Assumes USD/JPY exchange rate of 145.

• Operating income expected to decline due to lower gross margin and increased investments.