Operating Results and Forecast
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Consolidated Operating Results for the First Nine Months of the Fiscal Year Ending March 31, 2013
Overview
In the first nine months of the fiscal year ending March 31, 2013, the Japanese economy
saw a gradual recovery backed by restoration-led demand following the Great East Japan
Earthquake as well as steady consumer spending. However, production and exports declined
due mainly to the downturn in the European and Chinese economies, friction between
Japan and China and the prolonged appreciation of the yen. Moreover, there was a recoil
in production after the termination of the Japanese government's eco-car subsidy program.
Reflecting these factors, the overall economy remained weak from September 2012 onward.
In the months after September, in the lead up to the December 2012 Japanese governmental
elections and expected regime change, the yen began to depreciate while stock prices rose,
fostering a sense that the economy was seeing a partial bottoming out. Despite these signs,
the economic outlook remains unpredictable.
Under these circumstances, the Ryobi Group promoted proactive marketing and the development
of new products to meet user needs while taking various measures to reduce costs,
improve productivity and streamline business operations.
As a result, performance in the first nine months included a slight increase in revenues
compared with the same period of the previous year; however, earnings decreased
due to a decline in profitability.
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Consolidated Earnings
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| Nine months ended December 31, 2011 |
Nine months ended December 31, 2012 |
Change | ||||
| Millions of yen |
% of net sales |
Millions of yen |
% of net sales |
Millions of yen |
% | |
| Net sales | 123,256 | 124,263 | 1,006 | 0.8% | ||
| Operating income | 5,892 | 4.8% | 2,544 | 2.0% | -3,347 | -56.8% |
| Net income | 3,018 | 2.4% | 1,174 | 0.9% | -1,844 | -61.1% |
Performance by Industry Segment
The Die Castings Business recorded an increase in revenues and a decrease in earnings
year on year. The growth in revenues was attributable to a rise in production in China
as well as firm orders received in the United States. However, earnings decreased
along with a decline in the profit margin attributable mainly to higher fixed costs
and cuts in product prices.
The Printing Equipment Business recorded a decline in revenues year on year
and an increase in operating loss. Capital investment remained weak in the printing industry,
reflecting a downturn in demand for printing, which has been affected by global economic
deceleration. Despite a rise in sales in Japan, sales in this segment fell and
operating loss rose because of a lack of growth in exports due to sluggish overseas orders.
The Power Tools and Builders' Hardware Business recorded decreases in revenues
and earnings year on year. Despite the fall in power tools, domestic sales remained
virtually the same year on year thanks to an increase in the sales of builders' hardware.
However, segment sales declined because of lower exports accompanying yen appreciation
and other factors. In addition, sales competition is further intensifying,
causing the profit margin to drop and thus lowering earnings.
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Net Sales by Industry Segment
|
| Nine months ended December 31, 2011 |
Nine months ended December 31, 2012 |
Change | ||||
| Millions of yen |
% of consolidated net sales |
Millions of yen |
% of consolidated net sales |
Millions of yen |
% | |
| Die Castings | 91,011 | 73.9% | 93,928 | 75.6% | 2,917 | 3.2% |
| Printing Equipment | 13,097 | 10.6% | 11,447 | 9.2% | -1,649 | -12.6% |
| Power Tools and Builders' Hardware |
19,148 | 15.5% | 18,886 | 15.2% | -261 | -1.4% |
| Total | 123,256 | 100.0% | 124,263 | 100.0% | 1,006 | 0.8% |
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Operating Income /Loss by Industry Segment
|
| Nine months ended December 31, 2011 |
Nine months ended December 31, 2012 |
Change | ||||
| Millions of yen |
% of segment net sales |
Millions of yen |
% of segment net sales |
Millions of yen |
% | |
| Die Castings | 4,422 | 4.9% | 1,666 | 1.8% | -2,756 | -62.3% |
| Printing Equipment | -673 | -5.1% | -822 | -7.2% | -148 | - |
| Power Tools and Builders' Hardware |
2,143 | 11.2% | 1,701 | 9.0% | -441 | -20.6% |
| Total | 5,892 | 4.8% | 2,544 | 2.0% | -3,347 | -56.8% |
Note: Total amounts are after balancing out intersegment transactions.
Consolidated Financial Statements for the First Nine Months of Fiscal 2013 < PDF 62KB >
Forecasts for the Fiscal Year Ended March 31, 2013
Previously, on October 17, 2012, the Ryobi Group announced its consolidated performance forecasts for the fiscal year ended March 31, 2013. As of April 18, 2013, the Group upwardly revised said forecasts as shown in the table below.
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Consolidated Performance Forecast for the Full Fiscal Year Ended March 31, 2013
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| Announced October 17, 2012 | Announced April 18, 2013 | Change | ||
| Millions of yen | Millions of yen | Millions of yen | % | |
| Net sales | 166,000 | 166,500 | 500 | 0.3% |
| Operating income | 3,300 | 3,300 | 0 | 0.0% |
| Net income | 1,200 | 2,000 | 800 | 66.7% |
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