Okuma Corporation waits for recovering demand brought by labor shortages

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October 30, Okuma Corporation announced the second quarter consolidated financial results.

In the US market, demand for machine tools has been subdued due to growing uncertainty about the future of the US-China trade war.

In the European market, demand also remained sluggish due to weak exports and the slowdown in the German economy.

The Chinese market was expected to pick up for a while, but with no progress in US-China trade negotiations, demand for machine tools continued to be slow.

In the domestic market, companies postponed capital investment worrying the decline in exports and the future of the US-China trade war.

Under these circumstances consolidated net sales decreased 11.0% from previous year to 89,352 million yen and net profit decreased 23.1% to 6,141 million yen.

The company expects that demand for machine tools will recover in the medium to long term thanks to demand push up by labor shortages, but in the short term it is expected that the company will keep struggling to make bottom of its profit for the time being.

For this reason, the company expects the full-year sales will decline 19.7% year-on-year to 170,000 million yen, and net income will decline hefty 40.6% to 11,000 million yen.

 

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