Financial Results for the Third Quarter of FY2023

On January 31, we announced our financial results for the third quarter of fiscal year 2023.

During the period, although the normalization of economic activity from the Corona pandemic made progress and the economy began to recover, the outlook remained uncertain due to high global inflation and continued monetary tightening, as well as geopolitical risks and the economic slowdown in China and other countries.

Summary of Financial Results for the Third Quarter of FY2023

Sales: 457.1 billion yen (vs. same period last year: +15.7%)

Business profit: 25.4 billion yen (vs. same period last year: 4.4 times bigger)

Profit attributable to owners of the parent: 13.4 billion yen (vs. same period last year:-2.5 billion yen)

As I reported at the time of our Q2 results announcement, we continued to have a busy period as customer orders increased from our initial forecast at the beginning of the period.

I would like to thank all of our employees who are working hard on a daily basis with the spirit of “Banji-nissei”*.

Compared to the same period last year, real volume and sales have also increased, partly due to the foreign exchange impact of the weaker yen.

In addition to the increase in sales, we have been able to accumulate more profit than planned thanks to everyone's productivity improvement activities and sales efforts.

As a result, the company outperformed the revised forecast announced in October, and all figures from sales to profit attributable to the parent company for the nine months ended December 31, 2023 reached a new all-time high.

In the Automotive Products division, 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, an increase in production volume by major customers, and the effect of foreign currency translation due to the yen's depreciation. And business profit also increased significantly due to increased volume, improved production efficiency, and the reflection of cost increases in selling prices.

In the general industrial products division, sales of rubber bearings for bridges continued to be strong from the previous fiscal year, while sales and profits of functional parts for printers and industrial hoses decreased from the same period of the previous year due to a decline in shipments by major customers.

However, as a result of your steady efforts and negotiations to pass on the higher cost of raw materials to selling prices, we have been able to land almost as planned.

Third Upward Revision of Full-Year Forecast for FY2023

Although the outlook for China remains uncertain, we have revised our full-year forecasts based on the current situation and available information, in addition to the third quarter results.

Net sales: 610 billion yen.

Business profit: 34.0 billion yen.

Net income attributable to owners of the parent: 13.8 billion yen.

As shown above, we expect both sales and business profit to be the highest in our history.

・Assumptions for exchange rates are 140 yen to the US dollar and 155 yen to the euro from the third quarter of the current fiscal year onward.

We continue to assume high volume operation, but we anticipate a temporary response to reduced production due to the impact of the earthquake and sudden quality checks by customers.

This may be a period of great ups and downs, but it is precisely because of these times that I ask you to be more aware than ever of S.E.C.Q. (Safety, Environment, Compliance, and Quality).

There are only two months left in fiscal year 2023.

Let's work together until the end of the fiscal year to gain momentum for the next term!

※Banji-nissei: “ Do your sincere best in not only business but also every aspect of your life. ”

(To pay attention to any matters including business and work wholeheartedly on everything.)

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