■Performance Trends of C&G Systems ＜6633＞

1. Summary of financial results for the interim period ending 2024/12

Consolidated financial results for the interim period ending 2024/12 fell below the initial plan, with sales of 1,830 million yen (down 11.4% from the same period last year), operating income of 54 million yen (down 69.1% from the same period), ordinary profit of 86 million yen (down 62.0% from the same period), and interim net profit attributable to parent company shareholders of 39 million yen (down 70.9% from the same period).

By segment, sales of the CAD/CAM systems business were 1,709 million yen (down 4.6% from the same period last year), operating profit was 97 million yen (down 37.2% from the same period), and operating profit margin was 5.7% (down 2.9 points from the same period). Since the direction of the EV shift is still uncertain in Japan, capital investment in the mold and parts manufacturing industry for automobiles was suppressed, and domestic CAD/CAM sales were 1,447 million yen (down 5.0% from the same period). Although there were some strong regions overseas, demand related to Thai Japanese automobiles did not recover, and overseas CAD/CAM sales were 261 million yen (down 2.0% from the same period).

Sales in the mold manufacturing business were 121 million yen (down 56.0% from the same period), and operating losses were 42 million yen (profit of 23 million yen for the same period last year). From the second half of fiscal 2023 to the first half of fiscal 2024, new model development and production declined due to a drop in the number of EV car sales, and in addition, it became a cleavage in the model change cycle for conventional models, and orders remained sluggish. As a result, sales declined drastically, and operating losses were recorded as sales declined.

(Written by FISCO Visiting Analyst Noboru Terashima)