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 FY23 2Q financial results and its summary.
Among the business environment surrounding our group, it remains uncertain due to soaring raw material and energy costs, rising labor and logistics costs, the continued depreciation of the yen in conjunction with the widening interest rate gap between Japan and the U.S., and concerns about the Chinese economy.
Automotive industry which our group belongs, production adjustments due to the frequent semiconductor supply shortages that occurred in FY22 have generally been resolved, and total production volume is on a gradual recovery trend. However, the industry is facing major changes, such as a decline in the market share of Japanese manufacturers in the Chinese market.
Under these circumstances, we recorded 13.7% accounting year on year increase in sales, to 38,473 million yen due to the recovery of production and sales volume by our customers.
Operating income was 98 million yen (operating loss of 693 million yen consolidated accounting year-on year) due to sales increase and effect of cost reduction activities.
Ordinary loss was 209 million yen (ordinary loss of 626 million yen consolidated accounting year-on year) due to a decrease in subsidy and grant income, as well as foreign exchange losses.
Net loss attributable to owners of the parent amounted to 586 million yen (net loss attributable to owners of the parent of 1,190 million yen consolidated accounting year-on year).
The forecast for FY23 remains unchanged from the forecasts announced on May 12, 2023, of 79,000 million yen in sales, 1,400 million yen in operating income, 1,300 million yen in ordinary income, and 300 million yen in net income attributable to shareholders of the parent company.
I would like to ask our shareholders for their continuous understanding and support.
November 10th, 2023
President & CEO