Fuji Electric Co Ltd (FELTF) Q3 2025 Earnings Call

Investor webinar replay

Replay transcript excerpt

Good afternoon. I'm Miyoshi of the Corporate Management Planning Headquarters. Thank you for attending the third quarter results briefing for Fuji Electric. The general overview of third quarter results is that the energy and industry segments continue to drive financial results, as we discussed during the interim results briefing in October. This is a summary of consolidated financial results for the first through third quarters on a year-on-year basis. Net sales, operating profit and ordinary profit all reached record highs. Net sales were up 60 billion yen year-on-year to 851.1 billion. The increase includes 4.8 billion yen of gains on translation of overseas subsidiary earnings. The increase due to the underlying growth in demand was 55.2 billion yen. Operating profit was up 5.6 billion yen year-on-year to 74.0 billion yen. We will look at factors behind movement in operating profit on the next page. Ordinary profit was up 5.8 billion yen year-on-year to 74.2 billion yen, owing to Forex gains booked to non-operating gains and losses. Extraordinary gains and losses were down 16.7 billion yen year-on-year, mainly due to a 16.6 billion yen decline in gains on the sale of investment securities recorded in the previous year. Net profit was down 6.9 billion yen year-on-year to 48.5 billion yen, owing to the movement in extraordinary gains and losses. We will now look at factors behind the movement in operating profit. On the negative side was a 9.3 billion yen increase in costs related to future growth investment, including labour costs. There was also a 4 billion yen drag from rising raw material costs, shown under added value and others. The higher raw material costs had a particularly pronounced effect on ED&C components in the industry segment and the semiconductor...