For shareholders and investors
Toward further development
PIOLAX group has been strengthening its competitiveness in technology, quality , and price by introducing SBU (Strategic Business Unit) in FY 2002, which encourages clarification of strategies and a consistent system of development, production, and sales of each business unit.
Approved by the Tokyo Stock Exchange, PIOLAX was listed on its first section on Sep. 1st, 2004.
With regard to the auto industry, one of the Group's most important markets, we have continued to exert a strong overseas presence in the North America and other countries. Since the large decrease in the production numbers of light vehicles due to the increase in light vehicle tax was offset by the strong export, our domestic production increased by 1.9% to 9.360 million compared to the same period the previous fiscal year.
In such a demanding environment, the PIOLAX group quickly dealt with flooding in order to securely supplement our business partners' needs. At the same time, we have been continuously promoting sales expansion efforts, mainly in North America and emerging countries. Nonetheless, due to the negative effects of the strong yen, our net sales were 64,275 million yen, a decrease in profit of 66 million yen (0.1%) compared to the previous fiscal year.
In terms of profits, as a result of the promotion of further streamlining and other countermeasures to cope with the effects of the strong yen, our operating income was 10,384 million yen, an increase in earnings by 1,232 million yen (13.5%) compared with the previous fiscal year, and our ordinary income was 11,429 million yen, an increase in earnings by 1,365 million yen (13.6%) versus the previous fiscal year, and our current net income attributable to owners of PIOLAX Inc. was 8,003 million yen, an increase in earnings by 978 million yen (13.9%) from the previous fiscal year.
With regards to the future economic outlook, while the Japanese government and Bank of Japan are expected to continue their economic policies and monetary easing, sluggish growth in consumer spending and slowdown in capital investment have been observed, combined with concerns about geopolitical risks such as terrorist attacks, the global market is likely to remain unpredictable. In the automotive industry, domestic automobile production is not projected to grow significantly due to the slow domestic sales because of sluggish growth in light vehicle demand. In addition, while the US and Chinese markets are forecast to remain strong, we believe that competition will become even more intense in the emerging markets like ASEAN with the rise of local automobile manufacturers. In such circumstances, the PIOLAX Group will promote company-wide streamlining activities while promoting global sales expansion targeting domestic and overseas car manufacturers. As a result of this, we expect consolidated net sales of 63,200 million yen, an operating income of 9,500 million yen, an ordinary income of 10,200 million yen and a current net income attributable to owners of PIOLAX Inc. of 6,900 million yen.
It should be noted that the exchange rate for this report has been set at $1 US = ¥105.