On the 9th, Kato Manufacturing Co., Ltd. <6390> released its consolidated financial results for the first quarter of the 2025 fiscal year (April to June 24). Sales decreased by 17.2% year-on-year to 10.823 billion yen, operating loss was 0.078 billion yen (compared to a profit of 0.19 billion yen in the same period of the previous year), ordinary profit decreased by 46.2% year-on-year to 0.438 billion yen, and net loss attributable to shareholders of the parent company for the quarter was 0.252 billion yen (compared to a profit of 0.631 billion yen in the same period of the previous year).

In Japan, sales amounted to 9.298 billion yen, down 82.1% year-on-year, and segment profit was 0.013 billion yen, down 3.8% year-on-year. Domestic sales of construction cranes decreased to 5.164 billion yen (down 83.4% compared to the same period of the previous year) due to the postponement of the sale of some large products, and overseas sales decreased to 1.236 billion yen (down 81.5% compared to the same period of the previous year) due to a decrease in large-scale sales to Asia in the previous period. Domestic sales of hydraulic excavators and other equipment remained at the same level as the previous year at 1.542 billion yen (up 104.1% year-on-year), but overseas sales decreased to 1.208 billion yen (down 62.4% year-on-year) due to a decrease in demand for exports to the Americas.

In China, sales were 0.703 billion yen, up 112.2% year-on-year, and segment loss was 0.109 billion yen (compared to a loss of 0.272 billion yen in the same period of the previous year). The tough sales environment continues due to the prolonged slump in the real estate market.

In Europe, sales decreased by 74.5% year-on-year to 1.13 billion yen, and segment profit was 0.016 billion yen, down 76.0% year-on-year. This was due to a decrease in demand as a result of tightening financial policies.

For other regions, sales did not occur due to the separation of the European segment, and segment loss was 0.004 billion yen (compared to a loss of 0.017 billion yen in the same period of the previous year).

On the same day, revised earnings forecasts for the full year ending March 2024 were announced. Sales are expected to increase by 21.7% compared to the previous year to 70 billion yen (unchanged from the previous forecast), operating profit is expected to increase by 27.0% year-on-year to 2.1 billion yen (also unchanged), ordinary profit is expected to decrease by 41.8% year-on-year to 1.5 billion yen (also unchanged), and net loss attributable to shareholders of the parent company for the year is expected to be 5.4 billion yen (compared to non-disclosure in the previous forecast).

In addition, regarding the dividend for the fiscal year ending March 2025, which was undecided, it was announced that the interim dividend will be 35 yen and the year-end dividend will be 35 yen per share. As a result, the annual dividend per share for the fiscal year ending March 2025 will be 70 yen (an increase of 5 yen compared to the previous year).