EarningsQ2 2024 Earnings Report

THK Co (1TK) Q2 2024 Earnings Report

1 Followers

Previous Report: Q1 2024

Next Report: Q3 2024

DE:1TK Q2 2024 EPS Results

Actual EPS€0.24

Consensus EPS―

Beat/Miss―

One Year Ago EPS€0.24

DE:1TK Q2 2024 Revenue Results

Actual Revenue€534.93M

Expected Revenue€491.88M

Beat/MissBeat by +€43.05M

YoY Revenue Growth+2.90%

Earnings Announcement Details

QuarterQ2 2024

Date08/07/2024

TimeTBA

Conference CallWednesday, August 7, 2024

DE:1TK Upcoming Earnings

THK Co's next earnings date is estimated for November 5, 2026, based on past reporting schedules.

Q2 2024 Earnings Call Audio

No earnings call audio is available for this earnings event.

Q2 2024 Earnings Slide Deck

Q2 2024 Earnings Call Summary

Q2 2024

Earnings Call Date:Aug 07, 2024|

% Change Since:

Earnings Call Sentiment|Neutral

The earnings call presents a mixed outlook for THK. While there are notable achievements in areas like the Automotive and Transportation business's profitability and promising growth in the Industrial Machinery sector, as well as sustainability initiatives, the significant declines in sales revenue and operating income, combined with challenges in multiple regions, highlight the company's ongoing struggles.

Company Guidance

During the Q2 2024 earnings call, Takashi Teramachi, President and COO of THK, provided an overview of the company's financial performance for the first half of the fiscal year ending December 2024. Consolidated sales revenue declined by 3.1% year-on-year to JPY 179.8 billion, with operating income decreasing by 49% to JPY 8.3 billion. Despite these declines, both metrics exceeded initial targets due to a gradual demand recovery in the Industrial Machinery business and favorable foreign exchange effects. The Automotive and Transportation business saw an improvement in operating income, driven by profitability enhancement efforts, although it faced a JPY 0.8 billion increase in fixed costs and a JPY 0.6 billion decline from the absence of a previous onetime subsidy. Total assets increased by JPY 30.4 billion to JPY 586.7 billion. The company maintained its growth strategy pillars and outlined key initiatives, including a focus on raising ROE and ROIC, expanding the business domain, and reinforcing sustainability and ESG initiatives. THK plans to allocate capital for future growth investments, maintaining a dividend payout ratio of 30%, with potential share buybacks considered when capital is excess.

Automotive and Transportation Business Profitability

The Automotive and Transportation business posted an increase in operating income due to efforts aimed at improving profitability, with positive contributions including a volume effect of JPY 0.2 billion, a variable cost ratio effect of JPY 1.2 billion, and an FX impact of JPY 0.5 billion.

Increased Sales in the Americas

Sales in the Americas increased due to the impact of the weaker yen and other factors.

Record Growth in Mobile Robots

SIGNAS, a next-generation transport robot, has been highly acclaimed and won the 2023 JSME Excellent Product Award.

Sustainability and ESG Initiatives

Efforts to become carbon neutral include the installation of new solar power generation equipment, switching to LED lighting, and introducing green electricity at production sites.

Promising Future Growth in Industrial Machinery

Anticipated progress on automation and robotization, and growth for semiconductor and EV-related CapEx are expected to drive future demand in the Industrial Machinery business.

DE:1TK Earnings History

Report Date	Fiscal Quarter	Forecast / EPS	Last Year's EPS	EPS YoY Change
Nov 05, 2026	2026 (Q3)	0.56 / -	0.077	―
Aug 05, 2026	2026 (Q2)	0.45 / 1.47	0.169	771.17% (+1.31)
May 11, 2026	2026 (Q1)	0.25 / 0.23	0.016	1357.82% (+0.21)
Feb 12, 2026	2025 (Q4)	0.27 / -3.76	0.058	-6613.61% (-3.81)
Nov 11, 2025	2025 (Q3)	0.23 / 0.08	0.091	-15.31% (-0.01)
Aug 06, 2025	2025 (Q2)	0.23 / 0.17	0.242	-30.04% (-0.07)
May 09, 2025	2025 (Q1)	0.14 / 0.02	0.09	-82.80% (-0.07)
Feb 12, 2025	2024 (Q4)	0.27 / 0.06	0.293	-80.32% (-0.24)
Nov 12, 2024	2024 (Q3)	0.21 / 0.09	0.094	-2.66% (>-0.01)
Aug 07, 2024	2024 (Q2)	- / 0.24	0.237	1.95% (<+0.01)

The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.

Beat

Missed