2nd Quarter/FY2016 ending in March 2017 Consolidated Financial Results
2/20 FY2016/1H Overview
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The financial results for the six months ended September 30, 2016 (hereafter, first half), show that the stronger yen significantly affected business. Nonetheless, due to the strength of our mainstay businesses, revenue was up 3% and profit was up 4% if the impact of exchange rates and special factors are excluded.In the Business Technologies Business, a gross profit margin of 50% was maintained and there was an effective 4% increase in revenue and 12% increase in profit due to factors such as hybrid-type sales, concentration on high-speed color MFP sales, and growth in sales of non-hardware products.In the Industrial Business, revenue and profit both decreased. However, in the TAC film business, after bottoming out during the first quarter, the margin on sales turned positive in the second quarter.The operating profit of 18.5 billion yen in the first half fell short of internal plans by approximately 1.3 billion yen. A primary cause for this was the delay of delivery of instruments for a major customer until the second half in the measuring instruments field. Another factor that contributed to the divergence from internal plans was the weakness of the GBP. Based on a comprehensive assessment of the progress of focus measures going into the second half in consideration of business conditions in the first half, excluding exchange rates and special factors, the full-term forecasts remain unchanged from those previously announced.
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