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Operating Results and Forecast

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Consolidated Operating Results for the Fiscal Year Ended March 31, 2016

Overview


In the first half of the fiscal year ended March 31, 2016, the Japanese economy showed signs of gradual recovery with improvements in capital investment and consumer spending thanks to economic and monetary policies undertaken by the government and Bank of Japan (BOJ). Overseas, the U.S. economy was firm while the economies of China and other emerging nations continued to see economic growth slow. In the second half, despite the BOJ's quantitative and qualitative monetary easing policies—which entailed an unprecedented negative interest rate—consumer spending, capital investment, housing demand and automobile sales remained less than robust. Also, a sense of anxiety permeated economic outlooks overseas, reflecting the repercussions of political instability in the Middle East and the deceleration of economic growth in China.

Under these circumstances, the Ryobi Group promoted proactive marketing and new product development to meet user needs while taking various measures to reduce costs, improve productivity and streamline business operations.

As a result, the Company's performance over the period included increases in both revenues and earnings compared with the previous fiscal year. In addition, profit attributable to owners of parent posted in the fiscal year ended March 31, 2016, rose significantly compared with the previous fiscal year. This was attributable to a decrease in tax expenses due to reassessments of the valuation allowance for deferred tax assets derived from net operating loss carryforwards that the Group's U.S.-based subsidiary posted.


Consolidated Earnings
Full-year fiscal 2015 Full-year fiscal 2016 Change
Millions of
yen
% of
net sales
Millions of
yen
% of
net sales
Millions of
yen
%
Net sales 227,163 254,508 27,344 12.0%
Operating income 9,122 4.0% 12,832 5.0% 3,710 40.7%
Profit attributable to
owners of parent
3,809 1.7% 9,305 3.7% 5,496 144.3%


Performance by Industry Segment


The Die Castings Business recorded increases in both revenues and earnings compared with the previous fiscal year. This was attributable to firm orders received in Japan and increases in revenues from products manufactured at the Company's U.S., Mexican, U.K., Chinese and Thai facilities. In addition to the increased revenues, earnings were boosted by the success of the Company's efforts to improve productivity and reduce costs as well as other initiatives.

The Power Tools and Builders' Hardware Business recorded an increase in revenues but a decrease in earnings compared with the previous fiscal year. Although sales grew in Japan and overseas, a rise in the cost of sales ratio led to a decline in profitability, resulting in the decrease in earnings.

The Printing Equipment Business saw increases in both revenues and earnings compared with the previous fiscal year. Domestically, sales were down due to such factors as intensifying sales competition. Overseas sales were up, however, as in North America and Europe strong showings of such high-value-added products as large-sized printing presses and printing presses equipped with the LED-UV curing systems offset a decrease in export sales to China due to that country's economic deceleration. Earnings increased as well, reflecting such factors as the growth in sales and an improvement in productivity.


Net Sales by Industry Segment
Full-year fiscal 2015 Full-year fiscal 2016 Change
Millions of
yen
% of
consolidated
net sales
Millions of
yen
% of
consolidated
net sales
Millions of
yen
%
Die Castings 173,329 76.3% 198,809 78.1% 25,480 14.7%
Power Tools and
Builders' Hardware
26,236 11.5% 27,076 10.6% 839 3.2%
Printing Equipment 27,380 12.1% 28,383 11.2% 1,002 3.7%

Operating Income by Industry Segment
Full-year fiscal 2015 Full-year fiscal 2016 Change
Millions of
yen
% of
segment
net sales
Millions of
yen
% of
segment
net sales
Millions of
yen
%
Die Castings 6,672 3.8% 10,534 5.3% 3,861 57.9%
Power Tools and
Builders' Hardware
812 3.1% 430 1.6% -381 -47.0%
Printing Equipment 1,625 5.9% 1,848 6.5% 222 13.7%

Consolidated Financial Statements for Fiscal 2016 < PDF 89KB >


Operating Results and Forecasts for Fiscal 2017