Mitsubishi Logisnext has released its financial results for the six months to September 30, 2024 revealing a 4.4% drop in net sales and significant falls in its operating profit, consequently adjusting down its earnings forecast for the financial year.

Net sales in the six months to September 30 were JPY328.55 billion (USD2.13 billion), while ordinary profit dropped 41.4% y-o-y to JPY12.33 billion (USD79.98 million) and operating profit fell 32.1% y-o-y to JPY15.22 billion (USD98.73 million).

The earnings forecast for the fiscal year ending 31 March, 2025 has been revised down with net sales for the year now expected to be JPY670 billion (USD4.35 billion), a drop of 4.5%.

“The global economy in the six months ended September 30, 2024 experienced stalled growth as geopolitical tensions continued to confound disinflationary developments and complicate the normalisation of monetary policy,” the H1 report reads.

“The pace of economic expansion in the US has slowed but remained firm. In Europe, while the economy is picking up, business confidence has lost momentum, partly due to the sluggish German economy. 

“Also, in China, despite a slight recovery at the moment, domestic demand, including the real estate slump, continues to be sluggish.”

The report also referenced prolonged geopolitical risks including the war in Ukraine and aggression in the Middle East as factors creating an uncertain market.

“On the other hand, the Japanese economy has been recovering moderately, with a good level of business confidence among companies and firm capital expenditure, due in part to strong inbound demand and progress in passing on price increases in response to rising prices, as well as a bottoming out of personal consumption as real wages do not seem to be rising in line with rising prices,” the report states.

"Against this backdrop, the domestic market for forklifts and other material handling equipment remained stable and firm. 

“Overseas, in the Americas, the adjustment phase of distributors’ inventories lasted longer than expected and the Company’s wholesale orders remained weak, but this phase is gradually beginning to dissipate. 

“In Europe, on the other hand, demand has been sluggish despite a temporary recovery trend. Asia, which had shown strength, has also been showing signs of slowing growth, and the demand for material handling equipment is also declining due to the economic stagnation in China.”