Fuji Electric Co Ltd (FELTF) Q3 2024 Earnings Call

Investor webinar replay

Replay transcript excerpt

Good afternoon. I am Arai, in charge of Corporate Management Planning Headquarters. I would like to explain the consolidated financial results for the third quarter fiscal year 2024. Please turn to page 4 for the financial results in the nine-month period ended December 31, 2024, an year-on-year comparison. Thanks to all of you, net sales, operating profit, ordinary profit, and profit attributable to owners or parent all recorded historical highs for the company. Net sales increased by 31.4 billion yen year-on-year to 791.1 billion yen. Excluding the FX impact coming from yen depreciation, it was up 17.9 billion yen. Operating profit increased 10.8 billion yen to 68.4 billion yen and operating profit ratio was up 1.1% year-on-year to 8.7%. In absolute value, it was up approximately 19% year-on-year. As for non-operating profit, it increased by 1 billion yen, mainly due to net interest expense, as we made investment in factory in Malaysia in FY 2024, using loans denominated in US dollars. This resulted in net interest expense of minus 1.3 billion yen, foreign exchange loss of 400 million yen, and others, many comprising of cost of converting the business of an affiliated company in Malaysia, which was quite substantial in FY 2023, resulting in non-operating profit of 2.7 billion yen, up in total 1 billion yen year-on-year. Ordinary profit increased by 11.7 billion yen year-on-year to 68.4 billion yen. Extraordinary profit was up 10.2 billion yen year-on-year to 16.2 billion yen, mainly from gain on sales of investment securities. Last fiscal year, the gain came to 6 billion yen, but this year we saw it increase significantly to 16.6 billion yen. With this as the main factor, extraordinary profit increased 10.2 billion yen. Profit attributable to owners or parent up 18...