I would like to offer my sincere gratitude to all of our shareholders for your support and understanding. I hereby report to you FALTEC group FY24 financial results and its summary.
Among the business environment surrounding our group, it continues to be uncertain due to high raw material and energy costs, rising labor and logistics costs, and sharp fluctuations in foreign exchange rates.
Automotive industry which our group belongs, it continues to face a difficult situation that several manufacturers will suspend production and shipments or postpone new launches due to fraud issues among automobile manufacturers in domestic market, and Japanese manufacturers’ market share in the Chinese market will decline.
Under these circumstances, we recorded 3.4% consolidated accounting year on year decrease in sales, to 79,114 million yen due to decrease of production and sales volume by our customers.
12.7% year-on-year increase on operating income, to 2,359 million yen due to production rationalization and cost optimization, improvement at the U.K. subsidiary, and strong sales in the automotive-related equipment business.
60.6% year-on-year increase Ordinary income, to 2,861 million yen due to improved operating income and increased compensation income.
Net income attributable to owners of the parent was 328 million yen (net loss attributable to owners of the parent of 790 million yen consolidated accounting year-on-year). Despite impairment losses on business assets owned by the Company and its overseas subsidiaries and reversed part of its deferred tax assets, the Company returned to profitability due to a significant improvement in ordinary income.
For FY25, we forecast sales of 72,000 million yen, operating income of 1,100 million yen, ordinary income of 800 million yen, and net income attributable to shareholders of the parent company of 200 million yen.
In addition, we regret to inform you that we will not pay a dividend for FY25, taking into consideration the business performance and financial position as in the previous fiscal year.
We sincerely apologize to our shareholders and ask for your continued support as we strive for early resumption of dividend.
May 14th, 2025
President & CEO
