RYOBI > Investor Relations > Operating Results and Forecast

Operating Results and Forecast

Consolidated Operating Results for the First Half of the Fiscal Year Ending March 31, 2012

Overview

In the first half of the fiscal year ending March 31, 2012, although the Japanese economy continued to face severe conditions attributable to the Great East Japan Earthquake, production began to recover in line with the restoration of supply chains and recovery trends were seen in exports and consumer spending.

However, many concerns persisted, including the rapid and continued appreciation of the yen, limited power supply, the aftermath of the nuclear accidents, deterioration in employment conditions and deflation. Also, the European debt crisis and U.S. economic slowdown as well as inflationary pressure in China and other emerging countries have exacerbated uncertainties in the economic outlook.

Under these circumstances, the Ryobi Group promoted various measures, such as aggressive marketing, reductions in costs, improvements in productivity and the streamlining of operational efficiency.

As a result, revenue for the first half under review increased compared with the corresponding period of the previous fiscal year. However, earnings declined year on year due to a rise in expenditures.

Consolidated Earnings

	Six months ended September 30, 2010		Six months ended September 30, 2011		Change
	Millions of yen	% of net sales	Millions of yen	% of net sales	Millions of yen	%
Net sales	80,340		81,705		1,364	1.7%
Operating income	4,543	5.7%	4,315	5.3%	-227	-5.0%
Ordinary income	4,170	5.2%	3,993	4.9%	-177	-4.3%
Net income	2,630	3.3%	2,309	2.8%	-320	-12.2%

Performance by Industry Segment

In the Die Castings Business, revenue grew and earnings declined year on year. Orders increased overseas, particularly in North America and China. In contrast, orders from domestic automobile manufacturers—the segment's main customers—decreased, which resulted in lower profitability and, consequently, a decrease in earnings.

In the Printing Equipment Business, although revenue declined year on year, operating loss improved. Against the backdrop of the sharp appreciation of the yen, stagnant performance of the printing industry and subdued capital expenditures, the environment surrounding this segment remained harsh. Due to these conditions, net sales in this segment fell year on year. Nevertheless, the segment's profitability improved, reflecting the Group's efforts to cut costs and expenses.

The Power Tools and Builders' Hardware Business achieved year-on-year increases in both revenue and earnings. Despite the ongoing influences of the disaster and severe sales competition, housing starts and consumer spending showed general recovery, resulting in an increase in both domestic and export sales. Reductions in costs and expenses also contributed to earnings growth in this segment.

Net Sales by Industry Segment

	Six months ended September 30, 2010		Six months ended September 30, 2011		Change
	Millions of yen	% of consolidated net sales	Millions of yen	% of consolidated net sales	Millions of yen	%
Die Castings	58,284	72.5%	59,144	72.4%	860	1.5%
Printing Equipment	9,957	12.4%	9,644	11.8%	-312	-3.1%
Power Tools and Builders' Hardware	12,098	15.1%	12,915	15.8%	816	6.8%
Total	80,340	100.0%	81,705	100.0%	1,364	1.7%

Operating Income /Loss by Industry Segment

	Six months ended September 30, 2010		Six months ended September 30, 2011		Change
	Millions of yen	% of segment net sales	Millions of yen	% of segment net sales	Millions of yen	%
Die Castings	3,931	6.7%	3,263	5.5%	-668	-17.0%
Printing Equipment	-547	-5.5%	-429	-4.4%	118	-
Power Tools and Builders' Hardware	1,159	9.6%	1,481	11.5%	322	27.8%
Total	4,543	5.7%	4,315	5.3%	-227	-5.0%