Japanese manufacturer posts strong sales growth, but Electronics Manufacturing Services division struggles.
Oki Electric Industry reported an increase in revenue for the third quarter, as robust demand for enterprise and public solutions offset a downturn in its Electronics Manufacturing Services (EMS) business.
The Tokyo-based manufacturer posted net sales of ¥307 billion ($2.03 billion/ €1.89 billion), up ¥20.4 billion ($135 million/ €126 million) year-on-year, while operating profit rose to ¥7.6 billion ($50 million/ €46 million), an increase of 31%. The company said its Enterprise Solutions division, which includes printers and cloud services, grew by 14.6% to ¥132.4 billion ($875 million/ €815 million), driven by strong hardware and software sales.
However, EMS sales fell ¥5.5 billion ($36 million/ €34 million) to ¥48.1 billion ($318 million/ €296 million), with the segment reporting an operating loss of ¥1.6 billion ($11 million/ €10 million), down from a ¥0.8 billion ($5 million/ €4.9 million) profit a year earlier. Oki also took a provision against trade receivables linked to a China-based ATM project, denting profits.
Despite the challenges, Oki reaffirmed its full-year profit target of ¥16 billion ($106 million/ €98 million) but revised its revenue forecast downwards by ¥7 billion ($46 million/ €43 million) to ¥453 billion ($3 billion/ €2.8 billion), citing weaker market conditions.
The company highlighted that 94 per cent of its annual sales forecast was already secured, suggesting confidence in its core businesses despite cost pressures and macroeconomic headwinds.
