Financial Results for the First Quarter of FY2023

On August 1, we announced our financial results for the first quarter of fiscal year 2023.

During the period, while supply constraints eased and demand increased in the service sector, the effects of high global prices and monetary tightening were seen.

As for industries related to our group's business, although there were concerns about the risk of economic recession due to prolonged high prices and monetary policies of various countries, the automotive market mainly saw a recovery in production volume of major customers as the shortage of semiconductors was resolved.

In addition, the yen weakened more than planned at the beginning of the year, which was a factor in the upward swing in sales.

Summary of FY2023 1Q Financial Results

Net sales: 145.6 billion yen (+24.2% y/y)

Business profit: 6.5 billion yen (vs. -2.0 billion yen in the same period last year)

Profit attributable to owners of the parent: 3.3 billion yen ( -2.7 billion yen in the same period last year)

This was a busy period for us as customer orders increased from the plan we made at the beginning of the year.

I would like to thank all of your daily hard work.

Compared to the same period last year, real volume and sales have also increased, although there is some foreign exchange impact due to the weaker yen.

In addition to the increase in sales, we have been able to generate solid profits through production efficiency and sales efforts.

In the automotive products segment, the increase was a reaction to production cuts by automakers in China and Japan during the same period last year due to shortages of semiconductors and other parts, as well as to the significant impact of the lockdown.

In terms of profit, we were able to generate significant figures due to the increase in production.

In the general industrial products segment, functional parts for printers struggled due to a decline in shipments and other factors, but industrial hoses recovered from the impact of customers' production cuts in the Chinese market by increasing domestic demand, and rubber bearings for bridges continued to receive firm orders from the previous year, generating solid profits.

Revision of FY2023 Earnings Forecast

We have revised our forecast for the current fiscal year from what we announced in May, in light of the first quarter results and the current exchange rate situation.

Net sales: 590 billion yen (+30 billion yen)

Business profit: 27 billion yen (+7 billion yen)

Net income attributable to owners of the parent: 11.8 billion yen (+5.0 billion yen)

*Assumed exchange rates for the second quarter onward have been changed since the announcement in May.

This forecast is the highest in the history of our group in terms of both "Sales and Business Profit”.

Your efforts over the past few years have certainly produced positive results.

In the future, we anticipate a further upturn in automobile production.

As for our group's production, I believe that we need to continue to be flexible in order to respond firmly to our customers' orders.

As the hot weather continues, let's take care of ourselves and work with Banji-nissei

“Do your sincere best in not only business but also every aspect of your life.”

SUMITOMO RIKO President's Blog

The contents of this blog are compiled by the Public Relations and Investor Relations Department of Sumitomo Riko Company Limited as the secretariat and posted on the blog based on the speeches and wr