SMC (TYO:6273) saw an over 12% decline in profit attributable to owners of the parent to 120.4 billion yen for the nine months ended Dec. 31, 2024, from 137.3 billion yen a year ago.

The industrial valve manufacturer cited lower production capacity utilization and a decline in foreign exchange gains as key reasons for the earnings decline.

The company also booked lower gains on the sale of non-current assets and increased losses on the retirement of non-current assets.

Basic earnings per share dropped to 1,880.28 yen from 2,128.98 yen a year earlier, according to a filing last Friday.

Net sales increased 1.3% to 590.5 billion yen from 582.6 billion yen a year earlier.

In a separate filing, SMC cut its forecast for the fiscal year ending March 31, to reflect the current performance.

It forecasted attributable profit of 151.0 billion yen (from 167 billion yen previously) or 2,358.50 yen per share, while net sales are expected to be lower at 788.0 billion yen (from 820 billion yen).

The company expects to pay a final dividend of 500.00 yen per share, with a full-year forecast of 1,000.00 yen per share.