Operating Results and Forecasts

Consolidated Operating Results for the First Nine Months
of the Fiscal Year Ending December 31, 2019

Overview

During the first nine months of the fiscal year ending December 31, 2019, the Japanese economy saw modest but constant recovery thanks to continuously robust corporate earnings and improving employment, reflecting the positive effect of various government-led economic policies. However, such negative factors as U.S.-China trade tensions led to a growing sense of uncertainty about the global economy and thus diminished the volume of domestic production and exports. Overseas, the U.S. economy remained firm, while China has seen the ongoing deceleration of economic growth along with the stagnation of once-burgeoning automobile sales. Because of this, the outlook for the global economy became murkier.

Against this backdrop, the Ryobi Group has been promoting proactive marketing while working to reduce costs, improve productivity and streamline business operations.

Taking these factors into account, operating results for the first nine months of the fiscal year ending December 31, 2019, are as presented in the following tables.

Consolidated Earnings

  Nine months of the transitional fiscal period ended December 31, 2018 First nine months of the fiscal year ending December 31, 2019 Change
Millions of yen % of net sales Millions of yen % of net sales Millions of yen %
Net sales   167,081  
Operating income 6,827 4.1%
Profit attributable to owners of parent 4,983 3.0%

Note: The previous fiscal period was a transitional fiscal period comprising only the nine months ended December 31, 2018 due to a change in the Company's fiscal year-end. As Ryobi has not prepared consolidated financial statements for the nine months of the transitional fiscal period ended December 31, 2018, the chart presented above does not include operating results for said period nor does it state changes based on year-on-year comparisons.

Reference:
Year-on-year changes in performance based on adjusted results for the nine months of the transitional fiscal period ended December 31, 2018

A comparison of the consolidated operating results for the first nine months of the fiscal year ending December 31, 2019 and the adjusted results for the nine months of the transitional fiscal period ended December 31, 2018 (including the contributions of domestic consolidated subsidiaries for the nine months of January through September 2018 as well as those of overseas consolidated subsidiaries for the nine months of January through September 2018), reveals decreases in both revenues and earnings.

Consolidated Earnings

  Nine months of the transitional fiscal period ended December 31, 2018 (adjusted) First nine months of the fiscal year ending December 31, 2019 Change
Millions of yen % of net sales Millions of yen % of net sales Millions of yen %
Net sales 187,352   167,081   -20,271 -10.8%
Operating income 11,706 6.2% 6,827 4.1% -4,878 -41.7%
Profit attributable to owners of parent 8,888 4.7% 4,983 3.0% -3,904 -43.9%

Performance by Industry Segment

For operating results by segment, Ryobi has made comparisons between operating results for the first nine months of the fiscal year ending December 31, 2019 and operating results for the nine months of the transitional fiscal period that have been adjusted using the method described in the overview above. This comparison is intended to increase the accuracy of the year-on-year comparisons.

The Die Castings Business recorded decreases in both revenues and earnings compared with the same period of the previous fiscal year. Sales decreased in Japan and overseas. In Japan, Ryobi was affected by a decline in domestic demand and the lower volume of orders received for products targeting China. Overseas, sales in the United States remained virtually unchanged year on year, while sales in China declined. On the earnings front, the impact of the sales decrease outpaced the effect of the Company's efforts to reduce costs and enhance productivity, causing segment earnings to decline.

The Builders' Hardware Business recorded increases in both revenues and earnings compared with the same period of the previous fiscal year. Domestic sales were up, while overseas sales decreased. Segment earnings grew thanks to the impact of overall sales growth and the Company's effort to reduce costs.

The Printing Equipment Business recorded decreases both in revenues and earnings. Sales decreased in Japan and overseas. The domestic business environment remained harsh, especially in the field of A1-size printing presses, as businesses remained cautious toward making capital investment due primarily to a sense of uncertainty regarding future outlook. Overseas, exports to such regions as the Americas and Asia decreased. In addition, despite the Company's efforts to reduce costs and enhance productivity, segment earnings were down year on year due to the impact of the sales decrease.

Net Sales by Industry Segment

Nine months of the transitional fiscal period ended December 31, 2018 (adjusted) First nine months of the fiscal year ending December 31, 2019 Change
Millions of yen % of consolidated net sales Millions of yen % of consolidated net sales Millions of yen %
Die Castings 158,089 84.4% 140,698 84.2% -17,391 -11.0%
Builders' Hardware 7,556 4.0% 7,870 4.7% 313 4.1%
Printing Equipment 21,541 11.5% 18,354 11.0% -3,186 -14.8%

Operating Income by Industry Segment

  Nine months of the transitional fiscal period ended December 31, 2018 (adjusted) First nine months of the fiscal year ending December 31, 2019 Change
Millions of yen % of consolidated net sales Millions of yen % of consolidated net sales Millions of yen %
Die Castings 10,653 6.7% 6,023 4.3% -4,630 -43.5%
Builders' Hardware 274 3.6% 474 6.0% 199 72.6%
Printing Equipment 775 3.6% 328 1.8% -446 -57.6%

Consolidated Financial Statements for the First Nine Months of Fiscal 2019 <PDF 114KB>


Forecasts for the Fiscal Year Ending December 31, 2019

As of November 11, 2019

With regard to performance forecasts for fiscal 2019, the forecast values announced on August 5, 2019, for the full year have not been revised.

Consolidated Performance Forecast

  Net sales Operating income Profit attributable to owners of parent Earnings per share
Millions of yen Yen
Announced Feb.13, 2019 245,500 11,100 7,800 240.97
Announced Aug. 5, 2019 224,500 8,100 5,800 179.18
Change -21,000
(-8.6%)
-3,000
(-27.0%)
-2,000
(-25.6%)

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