26 May 2021
FY 2020 Business Results
On May 13, we announced our business results for the fiscal year 2020. Our consolidated business results for the fiscal year were net sales of 2.9186 trillion yen, operating income of 113.9 billion yen, ordinary income of 114.1 billion yen, and profit attributable to owners of the parent of 56.3 billion yen.
Net sales declined from the previous year mainly due to the COVID-19 pandemic, leading to a decrease in automobile production and delay in communications and power construction projects, as well as due to a decline in optical fiber prices. To ensure profit, we reduced unessential costs, controlled investment in plant and equipment, and thoroughly introduced other cost reduction measures. However, we could not fully cover the reduction in net sales, resulting in a decrease from the previous year in each of operating income, ordinary income, and profit attributable to owners of the parent.
That said, the second half of the fiscal year saw a rapid recovery in automobile production, causing demand for automotive components to remain high. In addition, our corporate-wide cost reduction measures worked well. Consequently, the figures of net sales and each of the income and profit categories were the highest ever for the second half of a fiscal year. Moreover, the figures for the full year in all the categories were higher than the full-year forecast figures that we announced on February 25 after making a revision. I would like to express my sincere appreciation for your warm support, which contributed to realizing this.
For this fiscal year, we have announced our full-year forecasts for net sales of 3.35 trillion yen; operating income of 175 billion yen; ordinary income of 188 billion yen; and profit attributable to owners of the parent of 110 billion yen. The figures for net sales and operating income are the highest ever.
The impact of the spread of the novel coronavirus infection is uncertain. Furthermore, there are concerns about the recent global shortage of semiconductors and an increase in logistics costs due to a shortage of containers and port congestion. All of us in the corporate group will join together in fully reinforcing the SEQCDD (safety, environment, quality, cost, delivery, development) framework, which constitutes the foundation of manufacturers. While overcoming problems regarding these elements, we will continue to cooperate with one another toward future growth. In this regard, we would like to continue to receive your support again this fiscal year.
Reference: Fact Book FY2020 4th Edition (May 13, 2021)