Overview of the latest financial information
Financial Results for the First Quarter of the Fiscal Year Ending December 31, 2022
During the first quarter of the consolidated year to date, the world economy has been strongly decelerated by the spread of the Omicron variant of COVID-19, as well as increased costs due to high raw materials and supply constraints, etc. Most recently, the outlook for the economy is likely to remain uncertain, as the global falling stock prices caused by the Ukraine crisis and the prolonged inflation due to the surge in resource prices and other matters are likely to be concerns.
Even in Japan, the pace of economic recovery has slowed, mainly due to the suppression of outings, etc. caused by the sudden spread of the Omicron variant. In the foreign exchange market, all major currencies, such as the U.S. dollar, the euro, and the Chinese yuan, have kept the depreciation of the yen.
Amid these economic conditions, the environment of each business of our company has changed from the previous year. As a result, Electrical and Electronic Components Business, Automotive Components Business decreased, and Equipment Business expanded.
For Electrical and Electronic Components Business, demand for electronic components such as connectors has remained firm due to the progress of digitalization. However, some of the factors have been affected by the delay in the procurement of components such as semiconductors on the customer side and the reactionary decline in stay-at-home demand, resulting in sluggish orders. In terms of a product-by-product basis, PC demand has remained firm due to changes in the demand structure caused by the expansion of remote work, etc. Accordingly, Micro Coaxial connectors and Board-to-Board connectors have been relatively steady. HDD-related components has increased due to continued strong demand for high-capacity HDD components for data centers.
For Automotive Components Business, although demand for automobiles remained firm, the situation has continued to be unstable due to the sluggish production activities of automobile manufacturers caused by supply chain turmoil according to the re-spread of COVID-19 and the shortage of semiconductors and other materials/parts/components, etc.
For Equipment Business, sales of semiconductor resin sealing equipment and molds have remained steady as semiconductor manufacturers have not caught up with the growing demand, and therefore production capacity has continued to increase. In addition, the automatic taping machines to prevent resin leakage used in the manufacture of thin semiconductors have also remained strong.
As a result, sales of the first quarter of the current consolidated fiscal year decreased 8.0% to 14,783 million yen, compared with the prior year, also our operating income decreased 36.0% to 1,190 million yen, ordinary income decreased 35.7% to 1,519 million yen, and net income attributable to owners of parent was decreased 65.0% to 588 million yen.