On May 7, Yokogawa released the results report for the fiscal year 2023 (April 1, 2023 to March 31, 2024), the company’s order volume revenue was 542 billion yen, compared with 518.4 billion yen in the previous fiscal year, an increase of 4.5%; Sales were 540.2 billion yen, up 18.3% from 456.5 billion yen in the previous fiscal year; Operating profit increased by 77.4% to 78.8 billion yen from 44.4 billion yen in the same period last year; Profit margin on sales (ROS) improved to 14.6% from 9.7% in the same period last year.

Orders, sales and sales profit for different business segments

0204XPEA41A-P During the reporting period, the company’s control business (industrial automation and control business) orders increased by 27 billion yen to 512.4 billion yen from 485.4 billion yen in the previous year; Orders for measuring instruments fell 2.7 billion yen to 25.9 billion yen from 28.6 billion yen a year earlier. New business and other orders fell by ¥700 million to ¥2.6 billion from ¥4.3 billion.

In terms of sales, the revenue of its control business was 503.8 billion yen, an increase of 76.3 billion yen compared with 427.6 billion yen in the same period last year; Revenue from the measuring instruments business was 31.8 billion yen, an increase of 6.8 billion yen from 25.1 billion yen in the same period last year; New business and other income was 4.5 billion yen, compared with 3.8 billion yen a year earlier.

In terms of operating profit, its control business increased significantly by 30.6 billion yen to 71.7 billion yen from 41.1 billion yen in the same period last year; The measuring instruments business increased by 3.5 billion yen to 8.1 billion yen from 4.6 billion yen a year earlier.

Yokogawa Electric said that the sales of the control business increased due to factors such as the improvement of the procurement environment for production parts and project purchases, the effect of the implementation of the price increase strategy, the inclusion of large orders after the epidemic in sales, and the impact of exchange rate changes. The operating profit increased due to the increase in gross profit resulting from the increase in sales, etc.

Orders for measuring instruments decreased. Due to the improvement of the procurement environment for production parts, the digestion of order balances continued to increase. Operating profit increases gross profit as sales increase.

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There has been a big change in demand in the Chinese market

Control orders and sales in different regions of the business

In the fiscal year 2023, Yokogawa Electric control business orders amounted to 512.4 billion yen, of which 134.5 billion yen in Japan and 378 billion yen overseas, accounting for 26.25% and 73.77% respectively

0204XPEA41A-P In overseas markets, the company’s orders from India, the Middle East and Africa continued to rise, and orders from China continued to slow down. Orders in China fell to 65.9 billion yen from 76.1 billion yen in the same period last year, a drop of 10.3 billion yen.

In terms of sales, the company’s control business sales amounted to 503.8 billion yen, of which Japan contributed 129 billion yen and overseas 374.9 billion yen, accounting for 25.6% and 74.4% respectively

However, contrary to the decline in orders, the company’s sales from China rose by Y7.4bn to Y74.1bn from Y66.8bn the previous year.

The company said that the customer’s long-term investment willingness is still there, there will not be much change; Energy-related demand is stable and investment in raw materials is expected to recover. Market demand in China continues to decline, but some are showing signs of bottoming out.