Takasago Thermal Engineering raised its current-year ordinary profit forecast by 21.2% from the previous forecast, adding to its record profit outlook. Under its new full-year plan, ordinary profit is expected to rise to ¥63.0 billion, with the earnings growth rate expected to expand year on year.
Takasago Thermal Engineering announced its results on 13 November. Although first-half ordinary profit fell sharply year on year, it raised its full-year ordinary profit forecast from the previous ¥52.0 billion to ¥63.0 billion. As a result, the current-year earnings growth rate is expected to be higher than previously forecast, further raising the outlook for record profit.
According to the earnings announcement, consolidated ordinary profit for the second half is expected to rise 76.4% year on year to ¥43.2 billion, and sales, operating profit and ordinary profit are all expected to exceed the previous forecasts. In the most recent 3 months, ordinary profit for July–September fell sharply year on year to ¥10.1 billion, but the upward revision keeps the full-year outlook on track.
Factors behind the revision include progress on work in hand, higher sales at overseas subsidiaries and improved profitability on individual projects. The company also factored in expected growth in orders and expects both its consolidated and non-consolidated results to exceed the previous forecasts. Net profit attributable to owners of the parent is unchanged from the previous forecast, as impairment losses on investment securities related to a real estate fund are expected to be recorded, offset by gains on the sale of investment securities.