NOK CORPORATION and Consolidated Subsidiaries
Consolidated Financial Results for the Nine Months Ended December 31, 2024 (Japanese GAAP)
February 5, 2025
Company name: | NOK Corporation (URL https://www.nok.co.jp) |
Securities code: | 7240 (Tokyo Stock Exchange) |
Representative: | Masao Tsuru |
Representative Director, Group CEO | |
Inquiries: | Tel: +81-3-5405-6372 |
Shin Okubo, Head, Investor Relations |
Dividend payable date (as planned): -
Supplemental material of quarterly results: Yes
Convening briefing of quarterly results: None
(Fractions are rounded down to the nearest million yen)
1. Consolidated Financial Results for the First Nine Months of FY2024 (Q3FY2024: April 1, 2024 to December 31, 2024)
(1) Consolidated operating results | (Percentage figures represent year-on-year changes) | ||||||||||
Net sales | Operating income | Ordinary income | Profit attributable to | ||||||||
owners of parent | |||||||||||
million yen | % | million yen | % | million yen | % | million yen | % | ||||
Q3/FY2024 | 589,106 | 3.8 | 31,173 | 77.2 | 41,306 | 36.3 | 28,926 | 36.9 | |||
Q3/FY2023 | 567,547 | 5.1 | 17,591 | 16.7 | 30,308 | 26.8 | 21,129 | 56.2 | |||
Note: Comprehensive income: 30,681 million yen, (35.7) % (Q3/FY2024); 47,692 million yen, 168.5 % (Q3/FY2023) | |||||||||||
Net income per share | Diluted net income | ||||||||||
per share | |||||||||||
yen | yen | ||||||||||
Q3/FY2024 | 175.98 | - | |||||||||
Q3/FY2023 | 125.15 | - | |||||||||
(2) Consolidated financial position | |||||||||||
Total assets | Net assets | Capital adequacy ratio | Book-value Per Share | ||||||||
million yen | million yen | % | yen | ||||||||
End of Q3/FY2024 | 933,981 | 637,000 | 63.4 | 3,629.19 | |||||||
End of FY2023 | 952,379 | 639,001 | 61.5 | 3,561.00 |
Reference: Owner’s equity: 591,923 million yen (end of Q3/FY2024); 586,055 million yen (end of FY2023)
2. Dividends
Dividend per share | ||||||||||||||||||||
First quarter | Second quarter | Third quarter | Fiscal year end | Total | ||||||||||||||||
yen | yen | yen | yen | yen | ||||||||||||||||
FY2023 | - | 37.50 | - | 50.00 | 87.50 | |||||||||||||||
FY2024 | - | 50.00 | - | |||||||||||||||||
FY2024 (Forecast) | 50.00 | 100.00 | ||||||||||||||||||
Note: Correction of | dividend forecast from the most recent dividend forecast: None | |||||||||||||||||||
3. Consolidated Forecast for FY2024 (April 1, 2024 to March 31, 2025) | (Percentage figures represent year-on-year changes) | |||||||||||||||||||
Net sales | Operating income | Ordinary income | Profit attributable to | Net income per | ||||||||||||||||
owners of parent | share | |||||||||||||||||||
million yen | % | million yen | % | million yen | % | million yen | % | yen | ||||||||||||
Full year | 755,700 | 0.7 | 35,300 | 54.1 | 45,800 | 13.7 | 30,200 | (4.4) | 183.73 | |||||||||||
Note: Correction of financial forecast from the most recent financial forecast: Yes |
*Notes
- Material changes in subsidiaries during this period (Changes in scope of consolidations resulting from change in subsidiaries): None
- Applying of specific accounting of the consolidated quarterly financial statements: Yes
(Note) For details, please refer to “(3) Notes Concerning Consolidated Quarterly Financial Statements” in the attached document.
(3) Changes in accounting policies and accounting estimates, retrospective restatement
- Changes in accounting policies based on revisions : Yes of accounting standard
(2) | Changes in accounting policies other than ones | : None |
based on revisions of accounting standard | ||
(3) | Changes in accounting estimates | : None |
(4) | Retrospective restatement | : None |
- Number of issued and outstanding shares (common stock)
- Number of issued and outstanding shares at the end of each period (including treasury stock)
- Number of shares of treasury stock at the end of each period
- Average number of shares (year to date)
Q3/FY2024 | 173,138,537 | FY2023 | 173,138,537 |
Q3/FY2024 | 10,037,672 | FY2023 | 8,562,394 |
Q3/FY2024 | 164,373,674 | Q3/FY2023 | 168,835,849 |
*Review of the Japanese-original version of the consolidated quarterly financial statements by certified public accountants or an audit firm: Yes (voluntary)
* Proper use of the forecasts for financial results, and other important matters:
Forward-looking statements such as forecasts of future financial results and other descriptions concerning our future business included in this document are based on currently available information and certain assumptions that we consider to be reasonable, and no representation or warranty is given with regard to the realization of such forecasts, etc. Actual financial results may differ significantly due to various factors. For assumptions, etc., used as the basis for the forecasts for financial results, please see “Explanation of Consolidated Financial Forecasts and Other Prospects for the Future” in the attached document.
* Supplemental material of quarterly results:
Supplemental material of quarterly results will be posted on the company’s website on February 5, 2025.
NOK Corporation (7240): Summary of Consolidated Financial Results for the Nine Months Ended December 31, 2024
○Table of Contents of Attached Document | ||
1. Qualitative Information on the Consolidated Operating Results for the Nine Months Ended December 31, 2024 | 2 | |
(1) | Financial Position and Operating Results | 2 |
(2) | Consolidated Financial Forecasts and Other Prospects for the Future | 2 |
2. Consolidated Quarterly Financial Statements and Principal Notes | 3 | |
(1) | Consolidated Quarterly Balance Sheet | 3 |
(2) | Consolidated Quarterly Income Statement and Consolidated Quarterly Comprehensive Income Statement | 5 |
Consolidated Quarterly Income Statement | ||
Nine Months Ended December 31, 2024 | 5 | |
Consolidated Quarterly Comprehensive Income Statement | ||
Nine Months Ended December 31, 2024 | 6 | |
(3) | Notes Concerning Consolidated Quarterly Financial Statements | 7 |
(Notes on Changes in accounting policies) | 7 | |
(Accounting Treatments Specific to the Preparation of Consolidated Quarterly Financial Statements) | 7 | |
(Segment Information) | 8 | |
(Notes on Significant Changes in the Amount of Shareholders’ Equity) | 8 | |
(Notes Concerning the Going Concern Assumption) | 8 | |
(Notes on Consolidated Quarterly Cashflow Statement) | 9 |
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NOK Corporation (7240): Summary of Consolidated Financial Results for the Nine Months Ended December 31, 2024
1. Qualitative Information on the Consolidated Operating Results for the Nine Months Ended December 31, 2024
- Financial Position and Operating Results
For the first nine months of the current consolidated fiscal year, the Group posted the following operating results: Net sales totaled 589,106 million yen (up 3.8% year on year); operating income was 31,173 million yen (up 77.2% year on year); ordinary income ended at 41,306 million yen (up 36.3% year on year), resulting in 28,926 million yen in profit attributable to owners of the parent (up 36.9% year on year).
Compared to the same period of the previous fiscal year, net sales for the seal business decreased slightly while sales for the electronic product business increased. At the operating income stage, operating income increased for both the seal business and the electronic product business.
The business overview for each business segment is as follows.
Net sales amounted to 273,002 million yen (down 0.8% year on year) and operating income was 18,991 million yen (up 16.0% year on year).
For automobile applications, the production volume of Japanese automobiles, which is a key indicator of sales, decreased compared to the same period of the previous fiscal year. In addition to the decrease in production volume in Japan, in overseas regions, sales of Japanese automobiles continued to be sluggish in the China market, where demand is growing for electric vehicles, and in the ASEAN region, the ongoing tightening of automobile loans in key market Thailand also impacted automobile demand. For general industrial machinery applications, sales were impacted by sluggish consumption and capital investment mainly due to inflation in Europe and America and the real estate downturn in China, and the slump in demand continues. Net sales for the segment only decreased slightly due to the positive effect of foreign exchange rates.
On the other hand, operating income increased due to an improvement in variable costs such as raw material prices in addition to the promotion of price revision activities such as passing on selling prices.
As there was a positive effect on net sales due to the exchange rate, net sales amounted to 290,725 million yen (up 7.0% year on year). Operating income greatly increased compared to the same period of the previous fiscal year from 937 million yen to 10,291 million yen.
Excluding the effect of foreign exchange rates, net sales increased slightly compared to the same period of the previous fiscal year. Sales for hard disk drives increased mainly due to the recovery in demand for data centers, however sales for smartphones and automobiles decreased. Regarding sales for automobiles, sales increased for automotive batteries in electric vehicles for global automobile manufacturers, however sales for other purposes decreased.
Due to the increase in net sales and the change in the product mix, operating income greatly increased.
Net sales amounted to 25,378 million yen (up 22.5% year on year) and operating income greatly increased compared to the same period of the previous fiscal year from 297 million yen to 1,895 million yen.
Total assets as of December 31, 2024 stood at 933,981 million yen, a decrease of 18,398 million yen compared with March 31, 2024. This was mainly attributable to a decrease in investment securities because of revaluation based on the value as of the reporting date. Total liabilities as of December 31, 2024 amounted to 296,980 million yen, a decrease of 16,396 million yen compared with March 31, 2024. This was mainly due to decrease in income taxes payable. Net assets totaled 637,000 million yen, a decrease of 2,001 million yen compared with March 31, 2024. Consequently, the ratio of shareholders’ equity to total assets stood at 63.4%. This mainly reflected a dividend payment and revaluation of investment securities as of the reporting date while there was an increase in retained earnings.
(2) Consolidated Financial Forecasts and Other Prospects for the Future
Regarding the consolidated financial forecasts for the fiscal year ending March 2025, due to revisions based on the business situation in the first nine months of the current consolidated fiscal year, the Group has revised the forecasts upward from the previous forecasts for net sales, operating income, ordinary income, and profit attributable to owners of the parent.
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NOK Corporation (7240): Summary of Consolidated Financial Results for the Nine Months Ended December 31, 2024
2. Consolidated Quarterly Financial Statements and Principal Notes
(1) Consolidated Quarterly Balance Sheet | (million yen) | |||
FY2023 | Q3/FY2024 | |||
(as of March 31, 2024) | (as of December 31, 2024) | |||
Assets | ||||
Current assets | ||||
Cash and deposits | 136,913 | 133,835 | ||
Notes and accounts receivable-trade | 154,313 | 160,520 | ||
Electronically recorded monetary claims | 22,552 | 23,923 | ||
Inventories | 114,767 | 104,656 | ||
Other | 12,616 | 15,362 | ||
Allowance for doubtful accounts | (185) | (183) | ||
Total current assets | 440,977 | 438,114 | ||
Noncurrent assets | ||||
Property, plant and equipment | 92,810 | 95,809 | ||
Buildings and structures, net | ||||
Machinery, equipment and vehicles, net | 104,108 | 103,211 | ||
Other, net | 52,834 | 55,051 | ||
Total property, plant and equipment | 249,753 | 254,072 | ||
Intangible assets | 14,874 | 14,519 | ||
Investments and other assets | ||||
Investment securities | 188,007 | 172,846 | ||
Net defined benefit asset | 13,428 | 12,399 | ||
Other | 45,483 | 42,168 | ||
Allowance for doubtful accounts | (145) | (141) | ||
Total investments and other assets | 246,774 | 227,274 | ||
Total noncurrent assets | 511,401 | 495,866 | ||
Total assets | 952,379 | 933,981 |
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NOK Corporation (7240): Summary of Consolidated Financial Results for the Nine Months Ended December 31, 2024
(million yen) | |||
FY2023 | Q3/FY2024 | ||
(as of March 31, 2024) | (as of December 31, 2024) | ||
Liabilities | |||
Current liabilities | |||
Accounts payable-trade | 68,548 | 68,731 | |
Short-term loans payable | 56,593 | 48,449 | |
Income taxes payable | 13,441 | 3,046 | |
Provision for bonuses | 11,219 | 8,946 | |
Other | 63,420 | 68,893 | |
Total current liabilities | 213,222 | 198,065 | |
Noncurrent liabilities | |||
Long-term loans payable | 18,871 | 19,126 | |
Deferred tax liabilities | 24,332 | 21,702 | |
Net defined benefit liabilities | 46,945 | 48,301 | |
Provision for share awards for directors (and | 398 | 482 | |
other officers) | |||
Other | 9,607 | 9,301 | |
Total noncurrent liabilities | 100,155 | 98,914 | |
Total liabilities | 313,377 | 296,980 | |
Net assets | |||
Shareholders’ equity | |||
Capital stock | 23,335 | 23,335 | |
Capital surplus | 26,203 | 27,343 | |
Retained earnings | 385,291 | 397,464 | |
Treasury stock | (14,014) | (17,758) | |
Total shareholders’ equity | 420,815 | 430,385 | |
Accumulated other comprehensive income | |||
Valuation difference on available-for-sale | 71,971 | 61,959 | |
securities | |||
Foreign currency translation adjustment | 68,779 | 80,232 | |
Remeasurements of defined benefit plans | 24,487 | 19,345 | |
Total accumulated other comprehensive | 165,239 | 161,537 | |
income | |||
Non-controlling interests | 52,946 | 45,077 | |
Total net assets | 639,001 | 637,000 | |
Total liabilities and net assets | 952,379 | 933,981 |
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NOK Corporation (7240): Summary of Consolidated Financial Results for the Nine Months Ended December 31, 2024
- Consolidated Quarterly Income Statement and Consolidated Quarterly Comprehensive Income Statement (Consolidated Quarterly Income Statement)
(Nine Months Ended December 31, 2024)
(million yen) | ||||
Q3/FY2023 | Q3/FY2024 | |||
Net sales | 567,547 | 589,106 | ||
Cost of sales | 479,811 | 484,122 | ||
Gross profit | 87,735 | 104,983 | ||
Selling, general and administrative expenses | 70,143 | 73,810 | ||
Operating income | 17,591 | 31,173 | ||
Non-operating income | ||||
Dividend income | 3,035 | 3,266 | ||
Foreign exchange gains | 2,291 | 596 | ||
Share of profit of entities accounted for using | 7,481 | 7,523 | ||
equity method | ||||
Other | 3,881 | 4,131 | ||
Total non-operating income | 16,689 | 15,518 | ||
Non-operating expenses | ||||
Interest expenses | 2,462 | 2,478 | ||
Loss on valuation of derivatives | 253 | 1,265 | ||
Loss on derivatives | 694 | 1,109 | ||
Other | 562 | 531 | ||
Total non-operating expenses | 3,972 | 5,385 | ||
Ordinary income | 30,308 | 41,306 | ||
Extraordinary income | ||||
Gain on sales of noncurrent assets | 349 | 355 | ||
Gain on sales of investment securities | 6,380 | 2,890 | ||
Gain on revision of retirement benefit plan | - | 4,119 | ||
Other | 262 | 8 | ||
Total extraordinary income | 6,991 | 7,373 | ||
Extraordinary loss | ||||
Loss on retirement of noncurrent assets | 1,197 | 1,023 | ||
Impairment loss | 249 | 849 | ||
Amortization of prior service cost | - | 1,308 | ||
Other | 1,568 | 47 | ||
Total extraordinary loss | 3,016 | 3,229 | ||
Income before income taxes | 34,284 | 45,450 | ||
Income taxes | 10,023 | 12,838 | ||
Net income | 24,260 | 32,612 | ||
Profit attributable to non-controlling interests | 3,131 | 3,685 | ||
Profit attributable to owners of parent | 21,129 | 28,926 | ||
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NOK Corporation (7240): Summary of Consolidated Financial Results for the Nine Months Ended December 31, 2024
(Consolidated Quarterly Comprehensive Income Statement) | ||
(Nine Months Ended December 31, 2024) | (million yen) | |
Q3/FY2023 | Q3/FY2024 | |
Net income | 24,260 | 32,612 |
Other comprehensive income | ||
Valuation difference on available-for-sale securities | 8,909 | (9,976) |
Foreign currency translation adjustment | 12,035 | 13,357 |
Remeasurements of defined benefit plans, net of tax | 142 | (4,891) |
Share of other comprehensive income of entities | 2,344 | (420) |
accounted for using equity method | ||
Total other comprehensive income | 23,431 | (1,930) |
Comprehensive income | 47,692 | 30,681 |
(Detail) | ||
Comprehensive income attributable to owners of parent | 43,060 | 25,225 |
Comprehensive income attributable to non-controlling | 4,631 | 5,456 |
interests |
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NOK Corporation (7240): Summary of Consolidated Financial Results for the Nine Months Ended December 31, 2024
- Notes Concerning Consolidated Quarterly Financial Statements (Notes on Changes in accounting policies)
(Application of the “Accounting Standard for Current Income Taxes,” etc.)
The “Accounting Standard for Current Income Taxes” (ASBJ Statement No. 27, October 28, 2022; hereinafter referred to as the “2022 Revised Accounting Standard”), etc., have been applied from the beginning of the current fiscal year. Regarding the revisions to the categories in which current income taxes should be recorded (taxation on other comprehensive income), the Company follows the transitional treatment prescribed in the proviso to Paragraph 20-3 of the 2022 Revised Accounting Standard and the transitional treatment prescribed in the proviso to Paragraph 65-2 (2) of the “Implementation Guidance on Tax Effect Accounting” (ASBJ Guidance No. 28, October 28, 2022; hereinafter referred to as the “2022 Revised Implementation Guidance”). These changes in accounting policies have no impact on the quarterly consolidated financial statements.
In addition, with regard to revisions related to the treatment in consolidated financial statements when gains or losses arising from the sale of subsidiary shares, etc., among consolidated companies are deferred for tax purposes, the 2022 Revised Implementation Guidance has been applied from the beginning of the current fiscal year. These changes in accounting policies have been applied retroactively, and the quarterly consolidated financial statements and consolidated financial statements for the same period of the previous fiscal year and the previous fiscal year have been prepared on a retroactive basis. These changes in accounting policies have no impact on the quarterly consolidated financial statements of the same quarter of the previous fiscal year and the consolidated financial statements for the previous fiscal year.
(Accounting Treatments Specific to the Preparation of Consolidated Quarterly Financial Statements)
As for tax expenses, some consolidated subsidiaries estimated an effective tax rate in a reasonable manner applying tax effect accounting to income before income taxes for the consolidated fiscal year including the period under review, and multiplied the estimated effective tax rate by income before income taxes for the period under review.
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NOK Corporation (7240): Summary of Consolidated Financial Results for the Nine Months Ended December 31, 2024
(Segment Information)
- Q3/FY2023
1. Information regarding net sales and income (loss) by reportable segment
(million yen) | |||||||
Reportable segments | Adjustments | Amount included in the | |||||
Electronic | Total | consolidated quarterly | |||||
Seal | Other | (Note 1) | income statement | ||||
product | |||||||
(Note 2) | |||||||
Net sales | |||||||
Net sales to external customers | 275,141 | 271,691 | 20,713 | 567,547 | – | 567,547 | |
Inter-segment sales/transfers | 1,057 | 72 | 533 | 1,664 | (1,664) | – | |
Total | 276,199 | 271,764 | 21,246 | 569,211 | (1,664) | 567,547 | |
Segment income | 16,369 | 937 | 297 | 17,603 | (12) | 17,591 |
Notes: 1. The amount of (12) million yen in adjustments of segment income (loss) represents the result of the elimination of inter-segment transactions.
2. Segment income is adjusted for operating income stated in the consolidated quarterly income statement.
2. Information regarding impairment of fixed assets, goodwill etc. by reportable segment (Significant Fluctuations in Goodwill)
In the other business segment, the amount of goodwill increased by 10,669 million yen as the company included Estoh into its scope of consolidation as a result of the acquisition of all the Estoh’s shares during the third quarter of this fiscal year.
- Q3/FY2024
1. Information regarding net sales and income (loss) by reportable segment
(million yen) | |||||||
Reportable segments | Adjustments | Amount included in the | |||||
Electronic | Total | consolidated quarterly | |||||
Seal | Other | (Note 1) | income statement | ||||
product | |||||||
(Note 2) | |||||||
Net sales | |||||||
Net sales to external customers | 273,002 | 290,725 | 25,378 | 589,106 | – | 589,106 | |
Inter-segment sales/transfers | 1,214 | 16 | 548 | 1,780 | (1,780) | – | |
Total | 274,217 | 290,741 | 25,926 | 590,886 | (1,780) | 589,106 | |
Segment income | 18,991 | 10,291 | 1,895 | 31,178 | (5) | 31,173 |
Notes: 1. The amount of (5) million yen in adjustments of segment income (loss) represents the result of the elimination of inter-segment transactions.
2. Segment income is adjusted for operating income stated in the consolidated quarterly income statement.
2. Information regarding impairment of fixed assets, goodwill etc. by reportable segment (Significant impairment loss on noncurrent assets)
In the electronic product business segment, the carrying amount of a part of machinery and equipment has been decreased to the recoverable amount and booked as impairment loss under extraordinary loss. The amount of said impairment loss booked was 849 million yen during the nine months ended December 31, 2024.
(Notes on Significant Changes in the Amount of Shareholders’ Equity)
The company repurchased 1,920,600 shares of its own shares based on the resolution at a meeting of the Board of Directors held on November 7, 2024. As a result of increases/decreases including the repurchase, treasury shares held by the company increased by 3,744 million yen during nine months from April 1, 2024 to December 31, 2024 to 17,758 million yen at the end of the period under review.
(Notes Concerning the Going Concern Assumption)
None.
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