Overview of the latest financial information
Financial Results of the Second quarter of the Fiscal Year Ending December 31, 2024
During the interim consolidated accounting period under review, the global economy saw a gradual slowdown due to continued monetary tightening, declining demand, and economic stagnation in China and Europe, although inflationary trends were seen to be subdued. In addition, the outlook remains uncertain due to a high level of caution regarding geopolitical risks such as the situation in Ukraine and the Middle East.
In Japan, corporate performance has improved due to improved profitability caused by the weaker yen and price pass-through. However, it is expected to take some time for a genuine economic recovery, partly due to the downward pressure on consumption caused by inflation.
In this economic environment, our group's Electrical and Electronic Components Business and Automotive Components Business recovered, and Equipment Business was sluggish.
In the Electrical and Electronic Components Business, sales increased year on year due to a recovery in our mainstay products such as connectors and HDD-related components. Demand for connectors remained strong, in line with the recovery in the laptop PC market. In the HDD-related components, demand for components related to high-capacity HDDs increased as companies resumed their investments in data centers. Profit recovered due to the continuously high level of factory utilization rate in line with the increase in the demand above.
In the Automotive Components Business, automakers made production adjustments due to factors such as the sluggish EV market and quality fraud issues at automakers. However, sales of safety driving-system sensors, such as airbags and brakes, remained firm, and demand for molded and assembled parts, such as card keys, remained strong, resulted in increases in revenues compared to the same period last year. On the profit side, the increase in demand for automotive sensors and molded and assembled parts boosted the factory utilization rate, increasing the profit level.
In the Equipment Business, demand for semiconductor molding machines for automotive semiconductors, including power semiconductors, in which our company excels, was sluggish due to excessive inventories of automotive semiconductors at semiconductor manufacturers and postponement of investments in EVs by automakers. Sales of consumer products also decreased year on year due to continued investment restraints caused by the sharp growth in the semiconductor market in the past. Profit decreased compared to the corresponding period last year due to a decrease in demand for equipment due to the slowing market conditions.
As a result, sales of the first half of the consolidated fiscal year increased 11.9 % to 31,001 million yen, compared with the prior year, also our operating income 1,181 million yen (We had operating loss of 1,506 million yen prior year), ordinary income 2,086 million yen (We had ordinary loss of 1,017 million yen prior year), and net income attributable to owners of parent was 1,020 million yen (We had net loss attributable to owners of parent 1,297 million yen prior year.).