19 November 2024
Financial Results for the First Half of FY2024
The first half of fiscal year 2024 was characterized by continued strong demand for wiring harnesses in the automotive business segment and for power cables in the environment & energy business segment. In addition, the company saw growth in the infocommunications business segment due to the higher demand for optical devices in data centers being driven by the expansion of artificial intelligence. These factors, along with the company’s sales efforts and weaker Japanese yen, resulted in consolidated net sales of 2,247.8 billion yen, a new record for the first half of a fiscal year.
In terms of profit, as a result of thorough efforts to improve productivity and reduce costs, combined with increased sales volume, the company recorded operating profit of 119.3 billion yen, ordinary profit of 121.7 billion yen, and interim net profit of 75.8 billion yen. These were significant increases compared to the same period last year. In particular, the figures for operating profit and ordinary profit are record highs for the first half of a fiscal year. As president, I am grateful that the cumulative daily efforts of every employee led to such positive results.
Turning to the full year consolidated financial forecast, the forecast for FY2024 net sales has been slightly reduced from 4.6 trillion yen, announced in August, to 4.55 trillion yen due to a lower expectation on the price of copper. Conversely, profit forecasts announced in August have been revised upward to 260 billion yen for operating profit, 255 billion yen for ordinary profit, and 150 billion yen for net profit attributable to owners of the parent company. We are planning for record highs in each profit category.
In general, the outlook on future business is uncertain due to increasing political and geopolitical risks, such as the situation in the Middle East, and continued stagnation of economies in European countries and China. Other factors such as production cuts in China by Japanese automobile manufacturers also raise concerns about business conditions. However, by working to strengthen our manufacturing capabilities, reduce costs, and fortify our supply chain, we will strengthen our management foundation and continue to grow steadily in accordance with the growth themes stated in the Mid-term Management Plan 2025 announced in May of last year.
Reference
“Consolidated Financial Results for the Six Months Ended September 30, 2024 (Under Japanese GAAP),” published November 1, 2024.
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