AHRESTY CORPORATION October 25, 2023 | |
For immediate release | |
Listed company name: | Ahresty Corporation |
Representative: | Shinichi Takahashi, President & COO |
(Code Number: | 5852 Tokyo Stock Exchange Prime) |
Contact for inquiries: | Atsushi Shimizu, Executive Officer and |
General Manager, Management Planning | |
Department | |
(Phone: | +81-3-6369-8664) |
Notice on Recording of Non-operating Income and an Extraordinary Loss, and Revisions to Consolidated Business
Forecasts (first half and full year) and Dividend Projection for Fiscal Year Ending March 2024
In view of recent trends in business performance, Ahresty Corporation ("the Company") hereby announces that it has recorded non-operating income and an extraordinary loss for the first half of the consolidated fiscal year ending March 2024 and has revised its consolidated business forecasts (first half and full year) and dividend projection for the fiscal year ending March 2024 released on May 18, 2023.
1. Recording of non-operating income (foreign currency exchange gain)
Due to changes in exchange rates that occurred during the first half of the fiscal year under review, we recorded a foreign currency exchange gain of 466 million yen as non-operating income. This came as a result of revaluation of the foreign currency-denominated claims and debts held by the Ahresty Group, based on the exchange rates at the end of the period, and may change depending on future exchange rates.
2. Recording of an extraordinary loss (loss related to Chinese business)
During the first half of the consolidated fiscal year under review, Hefei Ahresty Casing Co., Ltd., a consolidated subsidiary of the Company, suspended planned mass production of die-casting products due to the intensifying competition between Japanese automobile manufacturers, the Company's major customers in the Chinese market, and Chinese EV (electric vehicle) manufacturers. Regarding the inventory of products, dies and dedicated equipment related to such die-casting products, we estimated the unrecoverable amount in the future and recorded an extraordinary loss of 160 million yen as a loss related to Chinese business.
3. Revisions to business forecasts
(1) Revisions to consolidated results forecasts for the first half of the year ending March 2024 (from April 1, 2023 to September 30, 2023)
Net sales | Operating | Recurring | Net income attributable | Net income per | ||
income | income | to owners of parent | share | |||
million yen | million yen | million yen | million yen | yen | ||
Previous forecasts (A) | 74,700 | 400 | 100 | 100 | 3.86 | |
Actual results (B) | 77,700 | 600 | 900 | 1,000 | 38.68 | |
Difference (B ‒ A) | 3,000 | 200 | 800 | 900 | ||
Percentage change (%) | 4.0 | 50.0 | 800.0 | 900.0 | ||
(Ref.) Results of first half of | ||||||
previous year | 66,536 | (1,198) | (820) | (830) | (32.08) | |
(First half of year ending March | ||||||
2023) | ||||||
(2) Revisions to consolidated results forecasts for the full year ending March 2024 (from April 1, 2023 to March 31, 2024)
Net sales | Operating | Recurring | Net income attributable | Net income per | ||
income | income | to owners of parent | share | |||
million yen | million yen | million yen | million yen | yen | ||
Previous forecasts (A) | 150,000 | 2,200 | 1,600 | 1,100 | 42.43 | |
Revised forecasts (B) | 155,000 | 2,400 | 2,200 | 1,400 | 54.16 | |
Difference (B ‒ A) | 5,000 | 200 | 600 | 300 | ||
Percentage change (%) | 3.3 | 9.1 | 37.5 | 27.3 | ||
(Ref.) Results of previous year
(Year ended March 2023)
140,938
23
94
(84)
(3.26)
(3) Reasons for revisions
Net sales for the first half of the consolidated fiscal year under review exceeded the previous forecast due to recovery in the volume of orders received in the Die Casting Business Japan and North America, reflecting the easing of the semiconductor shortage and the production increase by car manufacturers, as well as the impact of the yen's weakening.
Operating income exceeded the previous forecast due to recovery in the volume of orders received in the Die Casting Business Japan and North America, as well as progress in reflecting rises in energy prices in selling prices, despite an increase in production costs due to the ongoing high energy prices and rising labor costs.
Recurring income and net income attributable to owners of parent exceeded the previous forecasts despite the occurrence of the above-mentioned extraordinary loss, mainly because of a significant increase in foreign currency exchange gain due to changes in exchange rates.
The Company has also revised the consolidated full-year business forecasts in view of the trends in business performance for the consolidated first half and the latest outlook for each segment.
4. Revisions to dividend projection
(1) Revisions to dividend projection
Dividend per share | ||||
Record date | End of second quarter | End of year | Total | |
Previous forecasts | 5.00 yen | 10.00 yen | 15.00 | yen |
Revised forecasts | 10.00 yen | 10.00 yen | 20.00 | yen |
Year ending March 2024 | ||||
Year ended March 2023 | 5.00 yen | 5.00 yen | 10.00 yen | |
(2) Reasons for revisions
The basic capital and shareholder return policy of the Company is to properly return profits to shareholders within a range that will not affect the soundness of the financial structure while making growth investment for electrification in view of the business environment of the Group and the characteristics of the Group's businesses, and we pay dividends based on consolidated business results.
Based on this policy, in line with the above revisions to business forecasts, we revised the dividend projection from 5 yen to 10 yen per share for the end of the second quarter. Accordingly, we have revised the projection for the amount of annual dividends per share from 15 yen to 20 yen.
(Note) The forecasts presented herein are based on information currently available and certain assumptions deemed reasonable by the Company, and actual results may differ significantly from these forecasts due to various factors.
Supplementary Material on Business Forecasts
Segment information of consolidated results forecasts for the full year
Net sales (million yen) | Segment profit (million yen) | |||||||||
Segment | ||||||||||
Previous | Revised forecasts | Difference | Previous forecasts | Revised forecasts | Difference | |||||
forecasts | ||||||||||
Die Casting Business: Japan | 62,000 | 63,500 | 1,500 | 650 | 1,000 | 350 | ||||
Die Casting Business: North | 41,000 | 45,000 | 4,000 | 900 | 1,400 | 500 | ||||
America | ||||||||||
Die Casting Business: Asia | 34,700 | 33,600 | (1,100) | 50 | (1,200) | (1,250) | ||||
Aluminum Business | 7,300 | 7,000 | (300) | 200 | 200 | 0 | ||||
Proprietary Products | 5,000 | 5,900 | 900 | 400 | 800 | 400 | ||||
Business | ||||||||||
Elimination of intersegment | － | － | － | － | 200 | 200 | ||||
transactions | ||||||||||
Foreign exchange rate assumption | (from 2Q: 140.0 yen to USD, 20.0 yen to CNY, 1.70 yen to INR) | |||||||||
(Previous forecasts: 130.0 yen to USD, 19.0 yen to CNY, 1.60 yen to INR) |
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AHRESTY Corporation published this content on 02 November 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 02 November 2023 10:25:59 UTC.
