Yokogawa Electric (6841) Q3 2024 earnings summary

Executive summary

• Orders and sales rose, driven by strong Middle East demand and favorable exchange rates, while operating income remained flat due to increased investments and personnel costs.

• Profit attributable to owners declined 25.7% year-over-year, reflecting the absence of a prior-year gain on investment securities.

• FY24 earnings forecast was revised upward, reflecting updated exchange rates and 3Q results.

• The "Growth for Sustainability 2028" plan focused on sustainable corporate growth.

Financial highlights

• Orders for 1Q–3Q FY24: ¥441.2B (+12.9% YoY); sales: ¥408.9B (+4.0% YoY); operating income: ¥58.4B (flat YoY).

• Ordinary income: ¥60.8B (down 0.3% YoY); profit attributable to owners: ¥38.7B (down 25.7% YoY).

• Gross profit increased to ¥195.0B; gross margin was 47.7%.

• Basic EPS fell to ¥148.74 from ¥197.81 YoY.

• Total assets increased to ¥708.7B; net assets to ¥479.7B; shareholders' equity ratio improved to 66.2%.

Outlook and guidance

• FY24 full-year orders forecast: ¥587.0B (+8.3% YoY); sales: ¥563.0B (+4.2% YoY); operating income: ¥79.0B (+0.3% YoY).

• Profit attributable to owners forecast at ¥51.0B (down 17.3% YoY); EPS forecast at ¥196.01.

• Exchange rate assumption revised to US$1 = ¥150.

• Annual dividend forecast maintained at ¥58.