I would like to offer my sincere gratitude to all of our shareholders for your support and understanding. We hereby present the FALTEC Group’s financial results and summary for the first quarter of fiscal year 2025.
The business environment surrounding the FALTEC Group remains uncertain due to persistently high costs of raw materials and energy, rising labor and logistics expenses, and rapid fluctuations in foreign exchange rates.
In the automotive industry, to which our group belongs, the situation continues to be challenging. In the United States, tariff policies and their impact have led to a decline in production and sales volumes in the Japanese market. In China, Japanese manufacturers are facing difficulties due to a decrease in market share.
Under these circumstances, consolidated net sales for the first quarter of the fiscal year amounted to ¥16,100 million, a decrease of 8.8% compared to the same period of the previous year, primarily due to a decline in our customers’ production and sales volumes.
Operating loss was ¥172 million, an improvement from the ¥238 million operating loss in the same period of the previous year, owing to cost reduction initiatives despite the impact of lower sales volumes.
Ordinary loss was ¥207 million, compared to ¥211 million in the same period of the previous year.
Net loss attributable to owners of the parent company was ¥328 million, compared to ¥323 million in the same period of the previous year.
We have not revised our forecast for the fiscal year ending March 2026, which was announced on May 14, 2025: net sales of ¥72,000 million, operating profit of ¥1,100 million, ordinary profit of ¥800 million, and net profit attributable to owners of the parent company of ¥200 million.
We kindly ask for your continued understanding and support.
August 7th, 2025
President & CEO
