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Makita Shares Soar After It Projects Fiscal-Year Net Profit to More Than Double

By Kosaku Narioka

 

Makita Corp. shares rose sharply Friday morning after the Japanese power-tool maker projected fiscal-year net profit would more than double and announced a share buyback.

The shares were recently 18% higher at 3,745 yen after rising as much as 22% earlier.

Makita said Thursday after market close that it expected net profit to rebound to Y33.30 billion ($248.5 million) for the fiscal year that started in April, following an 82% drop to Y11.705 billion in the previous fiscal year.

The power-tool maker said sharp increases in costs of raw materials and rises in other expenses hit the bottom line for the fiscal year that ended March.

The company said it will aim to raise profitability this fiscal year by streamlining operations and reducing inventory, as uncertainty continues over the business environment due to high inflation and rate increases by central banks.

Fiscal-year revenue is forecast to fall 11% to Y680.00 billion from the record high for the previous year.

Makita also said it would buy back up to Y10.0 billion of its own shares from May 15 to Aug. 31.

 

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

 

(END) Dow Jones Newswires

April 27, 2023 22:25 ET (02:25 GMT)

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