Financial Results for the Third Quarter of FY2022

On February 1, we announced our financial results for the third quarter of fiscal year 2022.

Although the third quarter (October-December) was affected by production cutbacks due to the spread of new coronavirus infection, especially in China, profits exceeded the plan due to the reflection of the soaring raw material prices in selling prices and reduction of overhead costs.

Summary of FY2022 3Q Financial Results

Net sales: 395.1 billion yen (+22.9% compared to the same period last year)

Business profit: 5.8 billion yen (5.2 times compared to the same period last year)

Profit for the quarter attributable to owners of the parent company: -2.5 billion yen (-4.6 billion yen in the same period last year)

The daily efforts of all the employees have also been reflected in the figures.

As a result, business profit of 6.7 billion yen was generated in the third quarter alone.

In the automotive products division, sales increased compared to the same period last year. Furthermore, progress was made in passing on higher raw material prices to customers, and the division returned to profitability in the cumulative period.

In the General Industrial Products segment, the impact of the China lockdown and raw material price hikes in the first quarter still remains, but they are supporting the entire group in terms of profit.

Profitability has been revised upward for the full-year forecast for FY2022.

Regarding the full-year earnings forecast for this fiscal year, we have not changed our previous forecast for net sales, but we have revised upward the business profit and figures below.

Net sales: 540 billion yen.

Business profit: 13.5 billion yen.

Net profit attributable to owners of the parent company: 1.2 billion yen.

The outlook for the external environment, including the situation in Ukraine, is expected to remain uncertain, but the revision was made in light of the progress made through the third quarter and the information available at this time.

There are only two months left until the end of the fiscal year.

I believe that achieving a positive final profit (net income attributable to owners of the parent company) is the minimum that our shareholders and other stakeholders require.

Although the economic situation in China is uncertain after the Chinese New Year, I think we have to produce solid results this fiscal year to gain momentum for the next fiscal year and beyond.

By continuing negotiations with customers to reflect selling prices, as well as reducing overhead costs through investment decisions that clearly define cost-effectiveness, we will make persistent effort until the very end.