Financial Results for the First Quarter of FY2024

On July 31, we announced our financial results for the first quarter of fiscal year 2024.

During the period under review, the economy as a whole showed a moderate growth trend.

However, there were some effects from high global prices, continued monetary tightening, the slowdown of the Chinese economy, and geopolitical risks.

In the automotive industry, the impact of production cutbacks by major customers was clear, resulting in a slight decrease in sales in real terms compared to the plan at the beginning of the year.

On the other hand, the depreciation of the yen resulted in an upward swing in sales.

Summary of FY2024 1Q Financial Results

Net Sales: 157.6 billion yen (+8.2% YoY)

Business profit: 8.5 billion yen (+30.3% YoY)

Profit attributable to owners of the parent: 5.9 billion yen (+81.4% YoY)

The plan we announced in May incorporated a certain degree of production cutback risk.

However, I believe that various adjustments were necessary in response to the wave of production cutbacks at the actual production lines

Therefore, I would like to thank you for all of your flexible responses.

Compared to the same period last year, business profit improved mainly due to higher production efficiencies and sales efforts.

In addition, the final profit attributable to the parent company increased significantly due to profitability at all sites.

In the Automotive Products Divisions, net sales increased significantly, partly due to the weak yen.

In terms of profit, we were able to achieve an increase of 1.5 billion yen over the same period last year, despite the impact of surging raw material and fuel prices, as a result of our efforts to reduce costs and reflect selling prices.

In the general industrial products division, functional parts for printers achieved early results thanks to structural reforms and measures to improve profitability, which were almost in sight last year.

Industrial hoses have recovered in the Chinese market, and the Industrial Products and Material Business has generated profits despite the harsh external environment.

As a result, business profit in the general industrial products segment also increased by 500 million yen compared to the same period last year.

Revision of FY2024 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: 625 billion yen (+15 billion yen)

Business profit: 33.0 billion yen (+2.0 billion yen)

Net income attributable to owners of the parent: 17.7 billion yen (+1.6 billion yen)

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

The outlook remains uncertain, particularly in China, Europe, and the Americas.

We expect production volumes to continue to fluctuate.

As for the factors causing production reductions at our major customers, we have seen many cases of supply chain vulnerabilities.

In order to prevent similar cases from occurring at our company, it is important to take a fresh look at S.E.C.Q. (Safety, Environment, Compliance, and Quality) once again.

Let us promote moving toward the theme of 2025P, "Further enhancing protability and Strengthening the management foundation for sustainable growth," through improvements and innovations by each and every one of us.

As the hot weather continues, let's take care of our physical condition and tackle our daily work with the spirit of “Banji-nissei!”