Smc KK

Latest Results (17.12.2024):

Net Sales Decline

In the second quarter of 2023, SMC Corporation reported net sales of 393,551 million yen, marking a 6.6% decrease compared to the same period in the previous year. This decline was primarily attributed to sluggish demand in the semiconductor market and a significant reduction in sales in Greater China, which saw a decrease of approximately 20% year-over-year.

Operating and Ordinary Profit

SMC Corporation's operating profit for the second quarter of 2023 was 105,124 million yen, reflecting a 21.3% year-over-year decrease. The decline in operating profit was due to reduced sales volume, a higher cost ratio affecting gross profit, and increased selling, general, and administrative expenses. Ordinary profit also fell by 25.5% to 134,660 million yen, influenced by decreased foreign exchange gains.

Profit Attributable to Owners

The profit attributable to owners of the parent company for the second quarter of 2023 was 94,735 million yen, a 28.8% decrease from the previous year. This reduction was driven by the factors affecting operating and ordinary profit, as well as smaller sales of investment securities compared to the previous year.

Financial Position

As of September 30, 2023, SMC Corporation's total assets increased by 7.6% from the previous fiscal year-end, reaching 2,073,699 million yen. This growth was mainly due to increases in inventories, property, plant, and equipment, and investment securities, particularly through the acquisition of additional U.S. treasuries.

Dividend and Outlook

SMC Corporation maintained its dividend forecast, projecting a total annual dividend of 900 yen per share for the fiscal year ending March 31, 2024. The company has not revised its consolidated forecast for the fiscal year 2023, despite ongoing global economic uncertainties and potential risks related to its operations in Russia.