On February 2nd, our company announced the financial results for the third quarter of this fiscal year.
In the first half of the fiscal year from April to September, the spread of the new coronavirus around the world had a significant impact, causing a decline in demand and forcing production adjustments.
On the other hand, from July, the recovery trend in demand became clearer than initially expected.
In the third quarter from October to December, demand also recovered more than we had expected in October.
As a result, in the cumulative total up to the third quarter, although sales were lower than that of last year, “business profit,” which indicates the profit of the core business, covered the loss in the first quarter and returned us to profitability.
In addition to the steady response of our employees to the requests from our customers, our efforts to improve profitability by reducing various costs including overhead costs have also borne fruit.
Thank you very much.
Gross sales: 283.8 billion yen (Year-on-year: -17%)
Business profit: 700 million yen (Year-on-year: -92%)
Profit attributable to owners of the parent company: -7.3 billion yen (vs. ＋ 0.7 billion yen in the same period last year)
China has maintained a high level of automobile production since the first quarter, and the rest of the world is also coming back at a faster pace than expected, especially in Asia.
In addition, demand for Hydraulic Hoses for general industrial products is high, especially in China, and is also recovering in Japan.
And precision functional components for offices in the electronics field, which had been struggling due to the expansion of remote work, are gradually seeing a recovery in demand as corporate activities resume.
Revisions to the FY2020 Forecast 修正2020年度预测
Although we revised the forecast at the time of the interim results, we have revised it upward again for the full fiscal year in conjunction with the announcement of the third quarter results.
Consolidated sales: 400 billion yen (-10% year-on-year)
Business profit: 5 billion yen (-56% year-on-year)
Profit attributable to owners of the parent company: -7.1 billion yen (vs.＋0.9 billion yen the previous year)
Considering that the initial forecast (as of July) was for full-year sales of 360 billion yen and an operating loss of 7.2 billion yen, the outlook has become much brighter.
Profitability for the third quarter of this fiscal year is still significantly in the red, but this is due to the implementation of various structural reforms that will lead to improved performance in the next fiscal year and beyond.
We would like to achieve good results in the fourth quarter to give us momentum for fiscal 2021.
On the other hand, as you all know, the effects of the new coronavirus infection are still not over and a state of emergency has been declared in Japan.
In addition, the future remains unclear, with Europe for example having also re-imposed a lockdown.
To our dear employees 致各位员工
It is assumed that the containment of the new coronavirus infections will take some time yet, until the vaccination and its effects become apparent.
The health of our employees and your families is our top priority.
For the sake of yourself and your loved ones, I know this is a difficult time, but I would like to ask you to carry out your daily work with thorough prevention measures against the infection.
There are only two months left in the fiscal year 2020.
Let’s communicate, share our wisdom, and make steady progress so that we can greet April with a smile.