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 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, 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,
there are concerns about a decline in the market share of Japanese manufacturers
in the Chinese market.
Under these circumstances, we recorded 10.5% consolidated accounting year on year increase in sales, to 81,886 million yen due to the recovery of production and sales volume by our customers and the reflection of selling prices commensurate
with costs.
Operating income was 2,093 million yen (operating loss of 251 million yen consolidated accounting year-on-year) due to sales increase and effect of structural reforms.
Ordinary income was 1,781 million yen (ordinary loss of 498 million yen consolidated accounting year-on-year) due to improved operating income despite the impact of foreign exchange losses.
Net loss attributable to owners of the parent was 790 million yen (net loss attributable to owners of the parent of 2,310 million yen consolidated accounting year-on-year) , mainly due to the recording of 1,935 million yen in extraordinary losses. The main factor was the recording of impairment losses on business assets owned by the domestic plants and the U.K. subsidiary due to the expected decline
in profitabilityin the future.
For FY24, we forecast sales of 77,000 million yen, operating income of 1,700 million yen, ordinary income of 1,500 million yen, and net income attributable to shareholders of the parent company of 600 million yen.
In addition, we regret to inform you that we will not pay a dividend for FY24, 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, 2024
President & CEO
