Recap of Business Results
The global economic picture was mixed during the first half of FY2014. While growth slowed in China and other emerging economies, the economy of the United States evinced steady growth. In Japan, though activity in the non-manufacturing sector was weak due to a delay in recovery in personal consumption, the economic mood in manufacturing brightened as exports swelled. Against this background, trends in fields related to Advanex's operations were positive, paced by firm demand in the auto sector in markets such as North America and China and the first increase in unit production in two years in Japan's automotive industry. For Advanex, net sales to the automobile industry jumped significantly YoY.
In the forecast of business results for the full 2014 fiscal year, based on an exchange rate of ¥108 to the US dollar, the Company forecasts a 3.3% increase in net sales YoY to ¥28 billion, a 21.9% leap in operating income YoY to ¥1 billion, a surge of 19.4% YoY in ordinary income to ¥980 million and net income rising 8.4% YoY to ¥740 million.