Operating Results and Forecast
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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.
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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.
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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% |
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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% |
Note: Totals represent the amounts after offsetting intersegment transactions.
Consolidated Financial Statements for the First Half of Fiscal 2012 < PDF 62KB >
Forecasts for the Full Fiscal Year Ending March 31, 2012
With regard to performance forecasts for fiscal 2012, the forecast values announced on July 8, 2011 remain unchanged.
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Consolidated Performance Forecast for the Full Fiscal Year Ending March 31, 2012
|
| Millions of yen | |
| Net sales | 170,000 |
| Operating income | 9,000 |
| Ordinary income | 8,000 |
| Net income | 5,000 |


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