Message to Shareholders & Investors
To all of our shareholders, we would like to express our deepest gratitude for your support and encouragement.
We also extend our sincerest sympathy to anyone who has contracted COVID-19 and all those who are experiencing challenges and disruptions in their daily life due to its spread.
Consolidated Results for FY 2019
In FY 2019, the Tsubaki Group’s consolidated net sales totaled ¥226.4 billion, while operating income amounted to ¥16.1 billion, for an operating income ratio of 7.1%.
Although Materials Handling Systems Operations showed strong performance domestically, net sales fell 5.1% overall year on year due to various factors. The most serious of these was the global economic slowdown caused by major uncertainties, such as United States–China trade issues, the United Kingdom’s exit from the European Union (BREXIT), and the emergence of COVID-19 as a global pandemic.
Operating income also declined by 25.9% year on year due to a decrease in gross operating income resulting from a fall in sales, an increase in depreciation and amortization in Mobility Operations, a deteriorating product mix, and other factors.
Outlook of Consolidated Result for FY 2020
In FY 2020, consolidated result forecasts for the second quarter (cumulative) are significantly lower than the same period of the previous fiscal year in terms of both net sales and earnings due to the rapid slowdown in the global economic slowdown due to the impact of the spread of COVID-19, which has led to a decline in production and capital investment demand for our major customers, including in the automobile industry.
Consolidated results for the full fiscal year are expected to recover, albeit moderately, beginning toward the middle of the fiscal year as the economic revitalization policies of governments around the world go into effect. However, the slump through the second quarter will have a significant impact, and both net sales and earnings are expected to be lower than the previous fiscal year.
(Consolidated sales are expected to total ¥190.5 billion, while operating income is expected to amount to ¥6.6 billion for an operating income ratio of 3.5%.)
Although the business climate is severe, the Tsubaki Group remains committed to becoming a leading global company. We will continue to address the issues that arose in this final fiscal year of the Mid-term Management Plan 2020 and to strengthen our operations base as a manufacturing company while also contributing to society as a solutions provider that does more than just make products, and striving to enhance shareholder value. Thank you again for your continued support and encouragement in this difficult time.