Investor Relations Performance Trends
March 2020 term 2Q
The Group entered the second year of its “IKO Mid-term business plan 2020 (three-year-plan) CHANGE & CHALLENGE ~Next Stage –ACCOMPLISH–.” With the aims of realizing sustainable growth and establishing a highly profitable organization, the Group has been implementing a range of measures to solve priority issues through inter-departmental efforts and improve efficiency in all operations.
From a sales perspective, the Group worked to further cultivate business ties with existing customers while developing new markets and customers. The Group also focused on reinforcing customer management using a new system and finding opportunities related to strategic products for which demand is expected to expand.
From a production standpoint, the Group worked to expand its facilities to meet medium- to long-term demand growth and reinforced its production capacity by such means as beginning production of IKO brand products at production subsidiary UBC (Suzhou) Bearing Co., Ltd. In addition, the Group strove to improve productivity by continuing to implement on-site improvement measures.
As a result, consolidated net sales for the six-month period under review totaled ¥25,443 million, down 13.2% year on year. On the earnings front, due in part to the decrease in sales and a fall in production, operating profit came to ¥1,210 million, down 52.0% year on year, and ordinary profit was ¥942 million, down 67.0% year on year. Profit attributable to owners of the parent amounted to ¥297 million, down 85.6% year on year.
Consolidated Balance Sheets
Total assets as of September 30, 2019, totaled ¥100,650 million, a decrease of ¥817 million compared with the end of the previous fiscal year. This mainly comprised growth in inventories of ¥3,067 million and tangible fixed assets of \2,638 million as well as decreases in cash and deposits of \3,696 million and notes and accounts receivable-trade of \2,693 million.
Total liabilities amounted to ¥40,993 million, a decrease of ¥279 million compared with the end of the previous fiscal year. This mainly comprised growth in accounts payable of ¥643 million and long-term loans payable of \1,321 million as well as decreases in notes and accounts payable-trade of \1,071 million and income taxes payable of \1,224 million.
Total net assets stood at ¥59,657 million, a decrease of ¥537 million compared with the end of the previous fiscal year. This mainly comprised decreases in retained earnings of ¥242 million, treasury stock of ¥115 million and foreign currency translation adjustments of ¥405 million.