Yokogawa FY24 results up; FY25 forecasts decline amid currency headwinds

** Yokogawa Electric Corporation (TSE:6841) announced strong fiscal year 2024 results, with record highs in orders, sales, operating income, and ordinary income, driven by robust performance in the Middle East. Net sales increased 4.1% year-over-year to ¥562.404 billion, and operating income rose 6.0% to ¥83.523 billion. However, profit attributable to owners of parent decreased 15.5% to ¥52.123 billion, primarily due to the absence of investment securities gains recorded in the prior year. Looking ahead to fiscal year 2025, Yokogawa anticipates a decrease in both sales and operating income, primarily due to foreign exchange impacts. Specifically, the company forecasts net sales of ¥560.0 billion and operating income of ¥80.0 billion. To mitigate shareholder concerns, Yokogawa plans to increase the annual dividend from ¥58 to ¥64 and will conduct a share buyback of up to ¥20.0 billion to enhance shareholder value. Despite near-term headwinds, Yokogawa remains focused on its long-term "Growth for Sustainability 2028" plan, aiming to provide shared value and create new revenue streams in the process. A key initiative will be strengthening integration and support from BaxEnergy, as well as a push into providing operations and management assistance.