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
07-31-23 2227ET