THK Co ( (THKLF) ) has released its Q4 earnings. Here is a breakdown of the information THK Co presented to its investors.
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THK Co., Ltd. is a Tokyo-based company specializing in the manufacturing of mechanical components like linear motion guides and ball screws, primarily serving the industrial machinery and transportation equipment sectors. In its latest earnings report for the fiscal year ending December 31, 2024, THK Co. reported a slight increase in revenue to ¥352,759 million, marking a 0.2% rise from the previous year. However, the company faced a significant drop in profits, with operating income and profit before tax decreasing by 26.8% and 25.7%, respectively. The profit attributable to owners of the parent fell to ¥10,439 million, a substantial 43.3% decline compared to 2023. The company attributed these declines to a combination of increased costs and a challenging global economic environment, marked by geopolitical risks and ongoing inflationary pressures. Despite a moderate recovery in demand for industrial machinery products, THK Co. faced setbacks due to a high order backlog from the previous year and a decline in automobile production. Regionally, revenue increased in the Americas and China, aided by a weaker yen, but decreased in Japan and Europe due to lower demand. Looking forward, THK Co. projects a revenue increase to ¥363,500 million for 2025, with expectations of improved profitability driven by strategic globalization efforts and expansions into new business areas.
