Amada (6113) Q3 2024 earnings summary

Executive summary

• Sales revenue for the nine months ended Dec 31, 2024, declined 3.6% year-over-year to ¥274.8bn, the second highest for a Q3 cumulative period.

• Operating profit dropped 22.2% year-over-year to ¥31.3bn, impacted by lower sales, reduced capacity utilization, and higher expenses.

• Net income attributable to owners of parent fell 27.3% year-over-year to ¥20.3bn.

• Orders decreased 1.4% year-over-year to ¥271.3bn, with domestic demand improving and North America achieving a record high for Q3 cumulative orders.

• Acquisition of H&F Co., Ltd. announced, aiming to expand press business and achieve long-term growth targets.

Financial highlights

• Gross profit margin slightly decreased to 43.7% from 44.2% year-over-year.

• SG&A expenses rose 4.8% year-over-year, with fixed costs up 6.1%.

• Inventory volume at ¥152.7bn, down 2.4% year-over-year, with turnover at 4.5 months.

• EPS for the period at ¥57.15, with a dividend payout ratio of 56.7%.

• Cash and cash equivalents increased to ¥95.6bn from ¥93.4bn at the previous fiscal year-end.

Outlook and guidance

• Management notes ongoing uncertainty due to geopolitical tensions and trade friction, despite interest rate cuts in Europe and the U.S.

• Full-year revenue forecast for FY2025 is ¥405.0bn, a 0.4% increase year-over-year.

• Operating profit is projected at ¥53.0bn, down 6.2%, and profit attributable to owners of parent at ¥36.0bn, down 11.4% year-over-year.

• Long-term vision targets FY2030 net sales of ¥500bn and ROE above 10%, with expansion into new business areas and automation.

• No revision to previously announced forecasts.