Komori
Earnings presentation materials6390KATO WORKS CO.,LTD.Machinery

Financial Results Briefing Materials for the Second Quarter of the Fiscal Year Ending March 2027

In the first half of the fiscal year ending March 2027, revenue fell 9.1% year on year, while the operating loss narrowed by ¥715 million from the same period of the previous year, driven by stronger spare-parts sales and cost controls. The company also recognized a ¥393 million gain on the sale of shares in a subsidiary in connection with its withdrawal from the China business, and the net loss narrowed as well.

Worth reading
54Recurring
0–100. This measures how worthwhile something is to read, not how good or bad the company is.
Direction
Improvement
Direction inferred from the company’s description.
Scale
715
¥ million (year-on-year reduction in operating loss)
Wording
Conditional
How definitive the wording is.

Contents of this document

Earnings presentation materialsSecond quarter of the fiscal year ending March 2027 (April–September)7 items taken from the company’s own explanation
Financial Results Figures (The key points of this material are explained below)
Net Sales¥24,309 million-9.1%
Operating profit¥-900 million
Ordinary income¥-991 million
Net income¥-668 million
Selling, general and administrative expenses¥3,676 million
Gross Profit Margin
Rate11.4%
Year-on-year change (points)+2.5 percentage points
Operating profit margin
Rate-3.7%
Year-on-year change (points)+2.3 percentage points (improved from -6.0%)
Results for the three months of the current quarter
Net Sales
¥14,286 million
Operating profit
¥-79 million
Full-year earnings forecast
Net Sales
¥61,000 million
Operating profit
¥600 million
Ordinary income
¥120 million
Net income for the current fiscal year
¥0 million
Interim dividend per share
¥35
Year-end dividend per share
¥35
Annual dividend per share
¥70
What the company explained in this material
Breakdown of Factors Affecting the ChangeReasons cited by the Company for the change in the figures.
  • Volume¥-1,145 million
  • Selling prices, costs, product mix and other¥753 million
  • Aftermarket parts¥758 million
  • Foreign Exchange¥38 million
  • Selling, general and administrative expenses¥309 million
  • Provision for allowance for doubtful accounts¥0 million
Assumptions Underlying the Business OutlookThe assumptions used by the company in preparing its forecast.
An increase in domestic demand for construction machinery in the second half, appropriate adjustment of selling prices, sales initiatives and the effect of expense reductions
New initiatives
  • The joint venture ACE KATO Pvt. Ltd. with Indian company ACE was formally launched, and the mobile crane business commenced
  • Launch of sales of the 220-ton all-terrain crane KA-2200R
Key KPIsA metric the company considers important as a management benchmark.
  • Overseas Sales¥6,104 million
    Year on year against the same period last year+1.9%
  • Overseas sales ratio25.1 %
  • Construction crane revenue¥16,599 million
    Year on year against the same period last year-8.6%
  • Revenue from hydraulic excavators and other products¥7,419 million
    Year on year against the same period last year-10.9%
  • Other sales¥290 million
    Year on year against the same period last year+6.0%
Segment results
  • Japan
    Net Sales¥22,914 million
    Year-on-year change in revenue-6.6
    Operating profit¥-944 million
  • Europe
    Net Sales¥2,257 million
    Year-on-year change in revenue21.7
    Operating profit¥-39 million
  • China and Other
    Net Sales¥5 million
    Year-on-year change in revenue-99.4
    Operating profit¥-40 million
Capital expenditures
¥496 million fixed-asset acquisitions
Annual Dividend
Annual dividend per share¥70
Interim¥35
End of period¥35
Contents of this document
ItemDetails
Document typeEarnings presentation materials
Fiscal Period CoveredSecond quarter of the fiscal year ending March 2027 (April–September)
Net Sales¥24,309 million (YoY -9.1%)
Operating profit¥-900 million
Ordinary income¥-991 million
Net income¥-668 million
Gross Profit MarginRate 11.4% / Year-on-year change (points) +2.5 percentage points
Operating profit marginRate -3.7% / Year-on-year change (points) +2.3 percentage points (improved from -6.0%)
Selling, general and administrative expenses¥3,676 million
Results for the three months of the current quarterNet Sales ¥14,286 million / Operating profit ¥-79 million
Full-year earnings forecastNet Sales ¥61,000 million / Operating profit ¥600 million / Ordinary income ¥120 million / Net income for the current fiscal year ¥0 million / Interim dividend per share ¥35 / Year-end dividend per share ¥35 / Annual dividend per share ¥70
Segment resultsSegment Japan / Net Sales ¥22,914 million / Year-on-year change in revenue -6.6 / Operating profit ¥-944 million, Segment Europe / Net Sales ¥2,257 million / Year-on-year change in revenue 21.7 / Operating profit ¥-39 million, Segment China and Other / Net Sales ¥5 million / Year-on-year change in revenue -99.4 / Operating profit ¥-40 million
Breakdown of Factors Affecting the ChangeFactors Volume / Amount ¥-1,145 million, Factors Selling prices, costs, product mix and other / Amount ¥753 million, Factors Aftermarket parts / Amount ¥758 million, Factors Foreign Exchange / Amount ¥38 million, Factors Selling, general and administrative expenses / Amount ¥309 million, Factors Provision for allowance for doubtful accounts / Amount ¥0 million
Key KPIsIndicator name Overseas Sales / Value ¥6,104 million / Year on year against the same period last year ¥1.9 million, Indicator name Overseas sales ratio / Value 25.1 % / Year on year against the same period last year Not disclosed, Indicator name Construction crane revenue / Value ¥16,599 million / Year on year against the same period last year ¥-8.6 million, Indicator name Revenue from hydraulic excavators and other products / Value ¥7,419 million / Year on year against the same period last year ¥-10.9 million, Indicator name Other sales / Value ¥290 million / Year on year against the same period last year ¥6 million
Assumptions Underlying the Business OutlookAn increase in domestic demand for construction machinery in the second half, appropriate adjustment of selling prices, sales initiatives and the effect of expense reductions
Annual DividendAnnual dividend per share ¥70 / Interim ¥35 / End of period ¥35
Capital expenditures¥496 million (fixed-asset acquisitions)
New initiativesThe joint venture ACE KATO Pvt. Ltd. with Indian company ACE was formally launched, and the mobile crane business commenced, Launch of sales of the 220-ton all-terrain crane KA-2200R
Items this document does not state (13)
Progress against full-year forecastSelf-assessment against the planUnit price and quantity metricsNumber of stores and locationsNumber of employeesRisk amount incorporated into the outlookMedium-term management plan targetsFinancial targetsPayout ratioAcquisition of treasury sharesOrders received and order backlogMarket Size / ShareKey points of the Q&A

These are items the company does not state in this document. We do not leave them blank, nor fill them in from other sources or by inference.

The reasons the company gives

The company's own explanation, not something inferred from the numbers.

Revenue declined because domestic unit sales fell and the company withdrew from the China business. However, the operating loss narrowed due to stronger sales of higher-margin spare parts, cost controls and lower selling, general and administrative expenses. Under extraordinary gains and losses, the company recognized a ¥393 million gain on the sale of shares in a subsidiary in connection with its withdrawal from the China business.

How to read this page

This is not the documentKomori reads the disclosure the company filed and writes this summary. Figures are as stated by the company and are not audited.
Weight is not a verdictIt measures how much this changes what the company had already told the market. It is not a view on the shares.
Corrections happenIf the company reissues this disclosure, the page is rebuilt from the corrected version and the revision number moves up.