Operating Results and Forecast
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Consolidated Operating Results for the Fiscal Year Ended March 31, 2011
Overview
Regarding fiscal year ended March 31, 2011, the Japanese economy experienced
a gradual recovery during the first half. This was primarily due to increases
in production and exports on the back of expanded demand spurred
by the government's economic stimulus measures as well as economic growth
in China and other emerging economies. During the second half, however,
the Japanese economy stalled. This was mainly attributable to the weakened effect
of economic stimulus measures following the conclusion of the subsidy system
for purchasing eco-cars, a drastic rise in the yen, severe employment conditions,
deflationary pressure and continual increases in crude oil and raw material prices.
In addition, economic uncertainty increased suddenly in the aftermath of
the Great East Japan Earthquake, which occurred in March 2011.
Under these circumstances, in addition to conducting aggressive marketing activities
and promoting the development of new products that accommodate user needs,
Ryobi Limited and its subsidiaries (the "Ryobi Group") implemented a raft of
initiatives that included cutting costs and expenses as well as increasing operational efficiency.
As a result, performance during fiscal 2011 included significant increases
in revenues and earnings compared with the previous fiscal year,
when the effects of the global recession were being felt.
Following the Great East Japan Earthquake, the Ryobi Group did not sustain injuries
to personnel or damage to production/sales bases at a scale significant enough
to disrupt ongoing business operations. Consequently, the impact of the disaster
on the Group's performance during fiscal 2011 was minimal.
|
Consolidated Earnings
|
| Full-year fiscal 2010 | Full-year fiscal 2011 | Change | ||||
| Millions of yen |
% of net sales |
Millions of yen |
% of net sales |
Millions of yen |
% | |
| Net sales | 125,940 | 161,730 | 35,790 | 28.4% | ||
| Operating income /loss | -925 | -0.7% | 8,285 | 5.1% | 9,210 | - |
| Ordinary income /loss | -1,312 | -1.0% | 7,438 | 4.6% | 8,751 | - |
| Net income /loss | -1,601 | -1.3% | 4,594 | 2.8% | 6,195 | - |
Performance by Industry Segment
The Die Castings Business recorded major increases in revenues and earnings
compared with the previous fiscal year. A rise in order volume, primarily
from the U.S. and Japanese automakers that comprise this industry segment's
main customers, was the result of various factors, including the effect of
Japan's subsidy system for purchasing eco-cars, and firm automobile markets
in such emerging economies as China as well as in North America.
The Printing Equipment Business recorded a year-on-year increase in revenues
and a reduction in losses. The printing equipment market remained weak due mainly
to longstanding stagnation in the printing industry, subdued capital investment
and the strong yen. Despite these negative factors, domestic and export sales to
China and other emerging economies grew.
The Power Tools and Builders' Hardware Business experienced a rise in both revenues
and earnings compared with the previous fiscal year. Although sales competition
remained severe, housing starts and consumer spending continued to recover. Growth
in profits was mostly attributable to increases in domestic and export sales
as well as a reduction in costs and expenses.
|
Net Sales by Industry Segment
|
| Full-year fiscal 2010 | Full-year fiscal 2011 | Change | ||||
| Millions of yen |
% of consolidated net sales |
Millions of yen |
% of consolidated net sales |
Millions of yen |
% | |
| Die Castings | 86,139 | 68.4% | 118,192 | 73.1% | 32,052 | 37.2% |
| Printing Equipment | 18,101 | 14.4% | 19,679 | 12.2% | 1,578 | 8.7% |
| Power Tools and Builders' Hardware |
21,699 | 17.2% | 23,858 | 14.7% | 2,159 | 10.0% |
| Total | 125,940 | 100.0% | 161,730 | 100.0% | 35,790 | 28.4% |
|
Operating Income /Loss by Industry Segment
|
| Full-year fiscal 2010 | Full-year fiscal 2011 | Change | ||||
| Millions of yen |
% of segment net sales |
Millions of yen |
% of segment net sales |
Millions of yen |
% | |
| Die Castings | -815 | -0.9% | 7,291 | 6.2% | 8,106 | - |
| Printing Equipment | -1,391 | -7.7% | -936 | -4.8% | 454 | - |
| Power Tools and Builders' Hardware |
1,281 | 5.9% | 1,930 | 8.1% | 648 | 50.6% |
| Total | -925 | -0.7% | 8,285 | 5.1% | 9,210 | - |
Note: Totals represent the amounts after offsetting intersegment transactions.
Consolidated Financial Statements for Fiscal 2011 < PDF 75KB >
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