IDOM released its first-half results and sharply lowered its full-year forecast and annual dividend, citing lower gross profit in its wholesale business and higher personnel and DX-related costs. The share price fell sharply to ¥918, down ¥248 from the previous day.
IDOM reported first-half results, with operating profit rising 8.6% year on year to ¥8.77 billion, a strong result, but the figure was well below the previous forecast of ¥11.9 billion. The market reacted with a decline.
The full-year earnings forecast was sharply revised down from the previous ¥24.0 billion to ¥18.5 billion, which is also expected to represent a year-on-year decrease.
The main factors cited were a decline in gross profit per wholesale vehicle following a sharp drop in used-car auction prices, as well as higher personnel and DX-related costs.
The annual dividend was also cut from the previous plan of ¥42.43 to ¥31.38.