 |
|
|
I would like to introduce the overall sales activities and future issues concerning our company for your further understanding of our business.
|
| Ryosuke Hiruma, President |
|
 |
|
Second quarter of Term 88 Business Report |
|
|
We completed our second quarter of Term 88 (from April 1, 2011 to September 30, 2011). We would like to report the business status in this term.
During the six months ended September 30, 2011, the outlook for the Japanese economy remained uncertain with concerns over the global economic slowdown and sharp appreciation of the Japanese yen, although there were some signs of recovery from harsh conditions resulting from the Great East Japan Earthquake.
Conditions in the paper and pulp industry, our group's main customers, still remain severe, with decreasing demand mainly due to the impact of the disaster while cost of raw materials and fuel rose.
Under such circumstances, our group recorded consolidated net sales of 5,681 million yen (a 6.4% decrease from the same period of the previous year). Thanks to a decrease in cost of sales resulting from an earnings structure reform, we had a consolidated operating income of 367 million yen (a 26.7% increase from the same period of the previous year), and a consolidated ordinary income of 351 million yen (a 56.9% increase from the same period of the previous year). Extraordinary income/loss improvements resulted in a net income of 280 million yen (a 90.4% increase from the same period of the previous year).
Results for individual segments are given below.
[Papermaking Equipment-Related Business]
(Japan)
With regards to domestic demand, amid the continued harsh business climate, dedicated sales promotion activities resulted in increased sales volume of papermaking belts, but a decrease in the sales volume of papermaking felts has been unavoidable. With regards to exports, due to increasingly intense market competition, the sales volume of both papermaking felts and papermaking belts dropped. As a result, we had 4,134 million yen in net sales (a 1.6% decrease from the same period of the previous year).
(North America)
The US dollar depreciated and the sales volume of papermaking felts deceased, but thanks to an increase in sales volume of papermaking belts, we achieved net sales of 446 million yen (a 1.0% increase from the same period of the previous year).
(Europe)
Despite an increase in sales volume of papermaking felts, the sales volume of papermaking belts decreased and the Euro depreciated, resulting in net sales of 760 million yen (a 10.2% decrease from the same period of the previous year).
(China)
Sales volume of papermaking felts increased, but due to a decrease in sales volume of papermaking belts, net sales were 111 million yen (a 49.9% decrease from the same period of the previous year).
[Industrial Felts Business]
As a result of decreased sales volume both in domestic demand and exports, affected by a decrease both in domestic and overseas demands, net sales were 228 million yen (a 35.5% decrease from the same period of the previous year).
In the first half of the current term, we made a capital investment amounting to 116 million yen in total with the purpose to enhance product quality as well as manufacturing productivity and others.
We regret to inform you that we have decided not to pay an interim cash dividend, in overall consideration of the unpredictable business environment surrounding our company and future financial situation, and other issues.
The business environment for our group is in an extremely severe situation with concerns over the global economic slowdown and the sharp appreciation of Japanese yen, and this state of affairs is likely to be persistent and protracted hereafter.
Under such circumstances, our group is deploying various measures formulated in "New Enterprise 2012 (NE-12)" throughout our group, which is a medium-term management plan started in financial year 2010, with the aim of building an organization that can generate continuous profits with an expertise in papermaking equipment. Under the NE-12, we will raise our international competitiveness by working to implement active sales promotion activities of new products and strengthen production technology capacity, as well as by focusing on cultivation of human resources. Through these efforts we will strive to improve our performance, coming together as a group and pushing vigorously ahead to raise our corporate value.
We appreciate your further support in the future. |
|
 |
|
