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Operating Results and Forecast

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Consolidated Operating Results for the Fiscal Year Ended March 31, 2017

Overview


In the fiscal year ended March 31, 2017, the Japanese economy saw the positive effects of economic and monetary policies undertaken by the government and the Bank of Japan as well as the yen's ongoing low valuation, which together drove an upturn in corporate production and capital investment and a pickup in consumer spending. Reflecting this, the overall domestic economy enjoyed gradual recovery. Overseas, however, the economic growth continued to slow, especially in emerging nations despite the strength of the U.S. and European economies.

Against this backdrop, the Ryobi Group has been promoting proactive marketing and the development of new products to meet user needs while taking measures to reduce costs, improve productivity and streamline business operations.

Nevertheless, the yen did appreciate compared with the previous fiscal year, with a quelling effect on sales and profit from overseas subsidiaries. As a result, the Company's performance over the period included decreases both in revenues and earnings compared with the previous fiscal year. In addition, the recording of profit attributable to owners of the parent is in part due to a reduction in tax expenses because of a reassessment 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 2016 Full-year fiscal 2017 Change
Millions of
yen
% of
net sales
Millions of
yen
% of
net sales
Millions of
yen
%
Net sales 254,508 240,502 -14,005 -5.5%
Operating income 12,832 5.0% 11,875 4.9% -957 -7.5%
Profit attributable to
owners of parent
9,305 3.7% 8,348 3.5% -957 -10.3%


Performance by Industry Segment


The Die Castings Business recorded decreases both in revenues and earnings compared with the previous fiscal year. Despite an overall rise in production volume (by mass), sales fell due to a decline in domestic sales as well as the negative effects of foreign exchange rate fluctuations on revenues from overseas subsidiaries. On the earnings front, domestic profit decreased in step with the decline in domestic sales, while the aforementioned currency fluctuations offset profit from overseas subsidiaries. Reflecting these factors, overall earnings in this business declined.

The Power Tools and Builders' Hardware Business recorded a decrease in revenues and an increase in earnings compared with the previous fiscal year. Sales were down due mainly to a decline in domestic sales of power tools. Nevertheless, earnings grew due to a decrease in the cost of sales ratio thanks to the depreciation of Chinese yuan and the resulting improvement in overall profitability.

The Printing Equipment Business saw a slight increase in revenues and a decline in earnings compared with the previous fiscal year. Thanks to an increase in orders received from Japanese customers for large- and middle-sized printing presses as well as a rise in exports to Europe, overall revenues grew slightly despite a decrease in exports to the United States, China and South Asia. However, earnings decreased in step with a rise in expenses for exhibition and other sales promotional activities.


Net Sales by Industry Segment
Full-year fiscal 2016 Full-year fiscal 2017 Change
Millions of
yen
% of
consolidated
net sales
Millions of
yen
% of
consolidated
net sales
Millions of
yen
%
Die Castings 198,809 78.1% 185,643 77.3% -13,166 -6.6%
Power Tools and
Builders' Hardware
27,076 10.6% 26,162 10.9% -914 -3.4%
Printing Equipment 28,383 11.2% 28,457 11.8% 74 0.3%

Operating Income by Industry Segment
Full-year fiscal 2016 Full-year fiscal 2017 Change
Millions of
yen
% of
segment
net sales
Millions of
yen
% of
segment
net sales
Millions of
yen
%
Die Castings 10,534 5.3% 9,027 4.9% -1,506 -14.3%
Power Tools and
Builders' Hardware
430 1.6% 1,468 5.6% 1,037 241.1%
Printing Equipment 1,848 6.5% 1,358 4.8% -490 -26.5%

Consolidated Financial Statements for Fiscal 2017 < PDF 90KB >


Operating Results and Forecasts for Fiscal 2018