NGK Insulation Q1 Report 2024
In the three months ended June 30, 2024, the Japanese economy continued to recover gradually driven by corporate profits, but some part such as personal consumption showed weakness due to price rising. Overseas, the United States remained firm, although the economy showed slowdown. Europe recovered moderately supported by personal consumption as inflation slowed. Meanwhile, China continued to stagnate due to the slump in the real estate market. The outlook remains uncertain due to the Russian invasion of Ukraine, prolonged conflicts in the Middle East and the political confusion in the United States and Europe.
Net sales in the three months ended June 30, 2024, increased 7.9% year on year to ¥152,521 million. With regard to profits, while profits increase due to sales growth, operating income decreased 4.9% year on year to ¥17,656 million mainly due to the impact of rising labor cost and an increase of cost of sales in energy storage in the Energy & Industry Business.
Ordinary income increased 4.4% year on year to ¥16,825 million due to a turnaround to profit in share of loss of associates accounted for using equity method due to the impact of the exclusion of METAWATER CO., Ltd. and a gain on liquidation of subsidiaries and associates due to the completion of liquidation of a logistics subsidiary, although a decline in operating income
Quarterly net income attributable to owners of the parent decreased 8.7% year on year to ¥10,964 million by having recorded of income tax-deferred related to deferred tax asset for tax credits of overseas subsidiaries in the same period of the previous year
In summary of June 30, 2024, total assets were ¥1,148,494 million, an increase of ¥20,917 million from the previous fiscal year-end. This was mainly due to increases in inventories, Investment securities and tangible assets. Total liabilities decreased by ¥3,327 million from the previous fiscal year-end to ¥421,024 million. This was mainly due to decreases in long-term borrowings and income tax payable despite an increase in short-term borrowings. Total net assets stood at ¥727,470 million, or ¥24,244 million higher than the previous fiscal year-end, due to increases in foreign currency translation adjustment.
