02 December 2022
Financial Results for the First Half of FY2022
In the first half of FY2022, the world experienced a moderate economic recovery. However, it also suffered not only from elevated prices, a shortage in supply of materials and components, and the extended invasion of Ukraine by Russia, but also a clear slowdown in the Chinese economy, making future prospects even more uncertain. The business environment surrounding the Sumitomo Electric Group remained harsh, mainly due to reduced car production resulting from the shortage of semiconductors and other components, as well as the appreciation of material prices, distribution costs, and energy prices.
Even under these circumstances, our consolidated net sales for the first half of FY2022 were 1.9 trillion yen, up 20.4% from the corresponding period of a year earlier, thanks to the sales expansion of wiring harnesses, power cables, cemented carbide tools, etc. and an appreciation in copper prices.
Based on the increase in the financial results for the first half, the forecast for consolidated net sales for the full fiscal year has been revised to 4 trillion yen, the highest ever, kept operating income unchanged at 160 billion yen, made a downward revision of ordinary income to 163 billion yen, and kept profit attributable to owners of the parent unchanged at 100 billion yen.
It is expected that our business environment will continue to remain severe. However, technology innovation is underway at an unprecedented speed, as indicated by, for example, green transformation, digital transformation, and the CASE* movement in the field of automobiles. I believe that there are many potential business opportunities for the Sumitomo Electric Group.
In the final year of VISION 2022, we will rally all the forces from the Sumitomo Electric Group in order to surely capture new demand from such prospective customers in each of our operating fields.
＊CASE: An acronym of connected, autonomous, shared" and electric.