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Makoto Hirose,
Director/President
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We would like to thank all of our stakeholders, including our shareholders and clients, for the kind understanding and cooperation that you have extended to us on a continuous basis.
As we have settled the accounts for our 71st fiscal year (from April 1, 2008 through March 31, 2009), we would like to report to you as follows:
This fiscal year is the Company's 60th year since its establishment. We formulated a new 3-year management plan to solidify corporate structure for the achievement of our long-term vision.
"Business Expansion", "Profitability Improvement", "Product Development", "Quality Culture Strengthening" and "Reinforcement of Group Management Foundation" are the Company's five key issues to be implemented in this fiscal year. We especially took a proactive stance in major initiatives including the establishment of our second plant in China as part of the overseas business expansion program and positioning the instrument panel sub-module business as the Company's third segment following safety parts and resin parts businesses. The first half of the fiscal year went well as planned.
However, the global financial crisis following the collapse of Lehman Brothers during last fall has shaken the world economy and changed the business environment in Japan, US and European countries completely.
Automotive industry, challenged by the deterioating world economy and the chaos in the financial market experienced an unprecedent demand contraction across the globe, which resulted in the drastic production cutbacks by auto makers.
All these have a direct impact on the Company's business results for this fiscal year. On a consolidated basis, sales totaled 93,263 million yen, a 11.7% decrease from the previous fiscal year, mainly due to drastic production cutback at our customers since last fall and the negative impact of exchange fluctuations, such as the rise of the yen against the US dollar.
Regarding income, due to decrease in sales volume, plus losses related to start-up of new models and an increase in cost and depreciation expense as a result of new accounting standards, operating income reduced by 88.2% to 384 million yen.
With an increasing loss from foreign exchange, ordinary loss amounted to 449 million yen. The Company wrote down 1,852 million yen in deferred tax assets and posted a net loss of 3,556 million yen for the current fiscal year.
With regard to year-end dividends, despite the current severe business environment, the Company plans to distribute year-end dividends of 3.75 yen per share for this fiscal year, the same as we did in the previous years.
Although the severe economic situation and business environment may continue over a period of time, the Company will strive for the improvement of its profitability through concerted streamlining efforts and for a sustainable strengthening of the Company's position. We look forward to the continued support and understanding of all of our shareholders and investors.
Jun 2009
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