NSK (6471) Q1 2025 earnings summary

Executive summary

• Q1 FY2024 sales rose 6.5% year-over-year to ¥200.5 billion, driven by yen depreciation and segment growth.

• Operating income increased 42.2% year-over-year to ¥5.9 billion; net income attributable to owners was ¥1.9 billion, reversing a loss last year.

• The business environment was as expected: industrial demand remained low but showed signs of recovery, while automotive production was flat year-over-year.

• The steering business remains classified as a discontinued operation, with related entities in India and Europe in the process of transfer.

• The Japanese yen weakened more than anticipated, positively impacting results.

Financial highlights

• Gross profit improved to ¥43.3 billion from ¥38.9 billion year-over-year.

• Basic EPS was ¥3.89, up from -¥1.85; diluted EPS was ¥3.88.

• Q1 sales outside Japan grew 11.6% year-over-year, with notable increases in China (+18.2%) and the Americas (+17.5%).

• Total comprehensive income for the period was ¥23.9 billion, down 31.4% year-over-year.

• Cash and cash equivalents at quarter-end were ¥154.6 billion, up ¥4.0 billion from March 2024.

Outlook and guidance

• Full-year FY2024 forecast: sales of ¥820.0 billion (+3.9% YoY), operating income of ¥36.0 billion (+31.4% YoY), and net income of ¥19.0 billion (+123.5% YoY); basic EPS forecast is ¥38.88.

• Interim and year-end dividends are forecast at ¥17.00 per share, totaling ¥34.00 for the year.

• Industrial Machinery Business expected to recover in H2; automotive production risk remains due to possible cuts by Japanese automakers.

• Structural reforms to continue, with one-time expenses of ¥5 billion planned for FY24.

• Actual results may differ materially from forecasts due to various factors.