Warmest greetings to all valued shareholders of the Ryoden Group.
The global economy during the current consolidated quarter is taking on a mottled pattern, with the U.S. continuing to perform strongly, China beginning to see the impacts of the trade friction on business sentiment even amid steady growth, and Europe experiencing a slowdown. Future prospects of the global economy are expected to remain uncertain, particularly with regard to the trade friction originating in the U.S. and how it may affect the global economy.
Meanwhile, the Japanese economy is continuing to show moderate recovery, with increases in capital investment and improvement in the employment situation on the back of robust corporate earnings. At the same time, however, concerns of the U.S.-China trade friction are also looming large in Japan.
Among the business sectors that affect the Ryoden Group, the capital-investment-related industries, the FA-related industry, the industrial machinery and equipment industries, and the energy-conservation-related industries continue to show favorable growth, and the automobile-related industries are performing strongly particularly in Japan and Europe.
Amid this economic climate, the Ryoden Group is striving to strengthen business as a “Global Solution Provider” that is capable of adapting to changes in the business environment. We have formulated CE2018 (Challenge & Evolution 2018) as a new medium-term management plan that outlines our commitment to thoroughly align ourselves with our customers, create value based on their needs, increase the group’s value with our customers and in the marketplace and seek increased profitability, and with this fiscal year being the final year of that plan, we are further accelerating our proposal activities based on customer needs.
As a result, the Ryoden Group’s financial results for the second consolidated quarter saw net sales of 117,939 million yen (5.6% increase from the previous period), operating profit of 2,364 million yen (15.8% increase), ordinary income of 2,340 million yen (4.7% increase), and profit attributable to the owners of the parent company of 1,610 million yen (5.9% increase).
In fiscal 2018 we forecast consolidated net sales of 237,000 million yen, an operating profit of 5,200 million yen, an ordinary income of 5,400 million yen, and profit attributable to the owners of the parent company of 3,700 million yen.
We thank you for your patronage and hope you will continue to favor us with your support going forward.
* Please note that all forecasts of financial results and other forward-looking statements are based on assumptions we judge to be rational at this point in time, and that actual performance results may differ from those projected above.