Investor Relations Performance Trends
March 2020 term 3Q
In line with its “IKO Mid-term business plan 2020 (three-year-plan) CHANGE & CHALLENGE ~Next Stage –ACCOMPLISH–,” the Group has been focused on realizing sustainable growth and establishing a highly profitable organization. To this end, we are pushing ahead with measures to solve priority issues through inter-departmental efforts and to improve efficiency in all operations.
From a sales perspective, the Group held private shows and exhibitions worldwide, as it worked to further cultivate business ties with existing customers, while developing new markets and customers. At the same time, the Group strove to find opportunities related to strategic products for which demand is expected to expand.
In terms of product development, the Group developed and released “LCL Linear Way (with Liquid Crystal Lubricated),” a linear motion rolling guide incorporating the world’s first liquid crystal lubricant for its bearings. This lubricant does not evaporate while delivering novel lubricating functions that enhance the durability of machinery and bearings. As such, the Group took a proactive stance toward R&D aimed at helping reduce burdens on the global environment.
From a production standpoint, the Group endeavored to boost production capacities with an eye to securing responsiveness to medium- to long-term demand growth. Steps included, for example, the manufacturing of IKO brand products at production subsidiary UBC (Suzhou) Bearing Co., Ltd. In an effort to create an even more efficient production system, the Group also promoted on-site improvement activities that focused on enhancing productivity.
As a result, consolidated net sales for the nine-month period under review totaled ¥36,384 million, down 16.4% year on year. On the earnings front, due in part to the decrease in sales and a fall in production, operating profit came to ¥1,156 million, down 67.6% year on year, and ordinary profit was ¥1,191 million, down 68.5% year on year. Profit attributable to owners of the parent amounted to ¥474 million, down 82.1% year on year.
Consolidated Balance Sheets
Total assets as of December 31, 2019, totaled ¥102,918 million, an increase of ¥1,450 million compared with the end of the previous fiscal year. This mainly comprised growth in inventories of ¥4,660 million and tangible fixed assets of \2,448 million as well as decreases in cash and deposits of \2,151 million and notes and accounts receivable-trade of \3,667 million.
Total liabilities amounted to ¥43,085 million, an increase of ¥1,812 million compared with the end of the previous fiscal year. This mainly comprised growth in short-term loans payable of \1,200 million and corporate bond of \5,000 million as well as decreases in notes and accounts payable-trade of \1,893 million, accrued expenses of \722 million and income taxes payable of \1,639 million.
Total net assets stood at ¥59,832 million, a decrease of ¥362 million compared with the end of the previous fiscal year. This mainly comprised an increase in valuation difference on available-for-sale securities of ¥323 million as well as a decrease in retained earnings of ¥605 million.