On October 31, we announced our financial results for the second quarter of fiscal year 2023.
During this period, economic activity has further normalized since the Corona pandemic and the economy began to recover. However, the outlook remained uncertain due to high global inflation and continued monetary tightening, as well as geopolitical risks and the slowdown of the Chinese economy.
Summary of FY202311 2nd Quarter Financial Results
Net sales: 297.9 billion yen (+16.5% YoY)
Business profit: 12.8 billion yen (vs. -0.9 billion yen in the same period last year)
Profit attributable to owners of the parent: 5.8 billion yen (vs. -4.8 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 our employees who worked hard daily in the spirit of Banji-nissei*.
Compared to the same period last year, real volume and sales also increased, although there were some foreign exchange effects due to the depreciation of the yen, as in the 1Q.
In addition to the increase in sales, everyone's productivity improvement activities, sales efforts, and other efforts have enabled us to generate bigger and more solid profits.
As a result, we have exceeded our revised 1H forecast announced in August, and have reached an all-time high for the first half of a fiscal year.
In the automotive products divisions, sales increased from the same period of the previous year due to the recovery from the slump in economic activities caused by supply chain disruptions and semiconductor shortages in the same period of the previous year, an increase in production by major customers, and the effect of foreign currency translation due to the weaker yen. Business profit also increased significantly due to increased volume and production efficiency.
In the general industrial products division, sales of rubber bearings for bridges continued to be strong from the previous year, while sales of functional parts for printers declined due to a decrease in shipments by major customers. Business profit was generally in line with the plan at the beginning of the year as a result of efforts to pass on higher raw material prices to selling prices.
Upwardly Revised Full-Year Forecasts for FY2023
Although the outlook for China remains uncertain, we have revised our full-year forecasts based on the current exchange rate situation and available information.
Sales: 600 billion yen.
Business profit: 28 billion yen.
Net profit attributable to owners of the parent: 11.9 billion yen.
As stated above, we expect both sales and business profit to be at an all-time high.
・Assumptions for exchange rates are 140 yen to the U.S. dollar and 155 yen to the euro from the third quarter of the fiscal year onward.
We believe that the external environment will continue to be uncertain, including geopolitical risks and the uncertain outlook for the Chinese economy.
However, there are many areas where we can do our best with our own efforts.
Based on past experience, a surge in production could lead to production disruptions.
We expect the second half of the year to continue to be busy with high operations.
Since it is a time like this, I expect that you will be more conscious than ever about S.E.C.Q. (Safety, Environment, Compliance, and Quality).
I believe that all of us in the Sumitomo Riko Group share the same desire to "make a better company and a better society," so let’s continue to work hard to achieve this goal.
※Banji-nissei: “Do your sincere best in not only business but also every aspect of your life.” (Not to mention business, but do not do anything rashly, but be mindful, careful, and prudent in all that you do.)