Makita Shares Jump After Quarterly Profit Rises on Lower Costs

By Kosaku Narioka

Makita shares rose sharply Tuesday morning after the Japanese manufacturer of power tools posted a 5.9% increase in its first-quarter net profit thanks to lower operating costs and a weaker yen.

Shares were recently 15% higher at 4,572 yen after rising as much as 18% earlier.

Makita said after Monday's market close that net profit climbed to Y11.185 billion ($78.6 million) for the quarter ended June from Y10.56 billion a year earlier.

First-quarter revenue fell 5.6% to Y184.455 billion as interest-rate increases in various regions weighed on housing demand, the company said. Revenue for North America dropped 11% to Y24.82 billion.

Yet, a weaker yen and declines in selling, general and administrative expenses helped buoy its bottom line, the company said. Costs of sales also fell 8.3%.

Makita maintained its earnings forecasts for the fiscal year ending March 2024. It said it expects revenue to fall 11% to Y680.00 billion and net profit will more than double to Y33.30 billion.

Write to Kosaku Narioka at kosaku.narioka@wsj.com

(END) Dow Jones Newswires

July 31, 2023 22:27 ET (02:27 GMT)

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