Reflecting on Consolidated Results in FY2016 2Q Cumulative
In the second quarter of FY2016 (April 1 – September 30, 2016), the global economy as a whole continued to trend modestly toward recovery. However, some economies were weak, including an economic downturn in emerging economies in Asia, including China, and resource-rich countries. The growing uncertainty of overseas economies such as this was a negative risk factor for Japan, pushing its economy downward. Fluctuations in financial capital markets and other impacts must also be closely monitored.
Amid this economic environment, the MISUMI Group is leveraging its unique business model, encompassing manufacturing and distribution operations. The goal of the group is to contribute to the manufacturing industry worldwide while simultaneously accelerating business expansion by widening its business infrastructure globally and eliminating customer inefficiency. In an effort to address a new wave of manufacturing that positions IT at its core, we improved our competitive strength by continuing to implement Internet strategies. In addition, we strengthened our global sure-and-quick delivery system. As a localization strategy, we are promoting local production-local procurement initiatives, with the goal of providing optimal sourcing. Thanks to these and other initiatives, our consolidated earnings growth was propelled by an increase in sales in the Factory Automation (FA) Business and growth of the VONA Business, offsetting unfavorable impact from forex fluctuations. We posted consolidated earnings growth underpinned by an increase in sales in the Factory Automation (FA) Business, where we benefitted from a rise in demand in the automotive industry and electronics industry, and growth in the VONA Business, owing to an increase in customer base underpinned by an expansion in the number of manufacturers for which we distribute products.
Reflecting this, in FY2016 1H, we posted consolidated net sales of ¥121.8 billion, a rise of 4.8% (11.5% growth on a local currency basis) year-on-year. On the profit front, we recorded operating income of ¥13.2 billion, a growth of 5.8%, and ordinary income of ¥13.1 billion, a rise of 7.7%. Meanwhile, our net income attributable to owners of the parent totaled ¥8.3 billion, an increase of 3.3%. We achieved record high sales and profits in 1H.
FY2016 Consolidated Business Performance Forecasts
In FY2016, given uncertainties in the global economy, mainly the slowdown in economic growth in China and emerging countries in Asia, we plan closely monitor market trends and trends at our rivals while also accelerating the growth in our three core FA, Die Components, and VONA Businesses. We aim to achieve a consecutive fiscal year of record high consolidated net sales and net income by honing the MISUMI QCT model in each region and enhancing our competitive strength globally.
President and CEO