Johnson Electric Holdings (00179) has announced that in the context of a persistently volatile and unpredictable global manufacturing environment, it expects revenue and gross profit margin to remain broadly similar to the previous financial year. Despite this, the group anticipates that net profit attributable to shareholders for the year ending March 31, 2026, will decline to a range of $207 million to $197 million. This represents a decrease of approximately 21% to 25% compared to the reported net profit of $263 million in the prior year. The expected decline in net profit is attributed to a combination of factors. Increases in distribution and administrative employee costs, the impact of foreign exchange movements on operating expenses, provisions for claims and compensation, and other operational items are expected to reduce net profit by approximately 12% to 16%. The remaining decline is primarily due to a non-cash impairment of intangible assets related to a past acquisition and unfavorable year-on-year fair value changes in certain investments.
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