Message from top management
I would like to express my sincere gratitude for your continued patronage and support of the Company.
In conjunction with the release of the interim financial statements, we are pleased to present the business results for the first half of the 1 0 4th business year of the Company (January 1 to June 30, 2018).
In the period under review, we carried out solution sales activities, proposing products and services that address our customers’ needs for labor-saving measures, and made smart-factory propositions to improve factory-wide production efficiency at customers’ sites. At the same time, we strove to build customer bases for the future, and to that end promoted middle-market strategies centered on Asia. However, although there was robust demand for facility investment in China, production was partly delayed by a shortage in supplies of electronic components. As a result, net sales amounted to 53,235 million yen.
Profits were affected by higher middle-market strategy and development costs, as well as the yuan’s strengthening against the dollar, which eroded gross margins at China-based manufacturing subsidiaries, resulting in operating profit of 3,650 million yen. Additionally, compared with the end of the previous fiscal year, the yen’s strengthening against the dollar resulted in a foreign exchange valuation loss due to revaluation of foreigndenominated receivables, leaving ordinary profit at 3,178 million yen, with 1,942 million yen in profit attributable to owners of parent.
Given uncertainties in foreign exchange trends and the business environment of emerging economies arising from the trade dispute between the U.S. and China, results projections for the full fiscal year to December 2018 remain unchanged from the previous announcement made on February 9.
Likewise, the previously announced projection for the year-end dividend remains unchanged at 25 yen per share.
On December 15 this year, the Company will mark the 80th anniversary of its founding. In order to secure continuous future growth with a view to the 90th and 100th years of the Company, based on our long-term vision of thriving in the 21st century as a global, innovative, Monodzukuri (manufacturing) enterprise, we will strive to steadily implement our three-year mediumterm plan for fiscal years 2018 through 2020, being “an enterprise that consistently provides customer-preferred, high-quality products and services.”
In order to realize our vision, we will work to strengthen our value-creation capabilities through solution sales, build customer bases by accessing new markets, develop and deploy globally-competent and innovation-minded personnel, and create smart business foundations.
On behalf of these endeavors, I would like to sincerelyrequest your continued goodwill and support.