最近期的决算概况

Overview of business results for the first quarter of the Fiscal Year ending December 31, 2018

With regard to the world economy in this 1st quarter of the consolidated term, the U.S., although seeing a negative effect on the expansion of the economy temporarily due to weather-related factors, maintaining high levels of business confidence, and good employment and income environments, obtained improvement toward consumer sentiment and continued to support the expansion of the economy. In addition, Europe's economy started to see signs of a slowdown in exports due to the strong euro, but a gradual recovery in consumer spending continued, led by domestic demand. Overall, the economies of developed countries expanded steadily. Furthermore, in China and other emerging countries, the economy has grown steadily owing to an expansion of external demand, and the world economy continues to show a steady trend of recovery.

In Japan, an increase in corporate profit continued, consumer spending grew steadily within the good conditions of employment and income environments and gradual and continuous recovery of the economy was observed.

In the midst of this economic environment, with regard to our group's Electrical and Electronic Components Business, overall, the sales level was equivalent to the performance of the same term of the previous year due to poor sales, etc. of mobile devise, including smartphones. With regard to Micro Radio Frequency (RF) Coaxial connectors, sales growth was sluggish as a result of a slowdown in smartphone market and other issues such as intensified competition, etc. With regard to Micro Coaxial connectors, sales for panel connections for laptop PCs continued to remain strong, and as a result of the adoption for internal connections continuing a steady upswing, sales grew steadily. Sales of FPC/FFC connectors used in games consoles and digital home appliances grew steadily, and with regard to Board-to-Board (FPC) connectors, receipt of orders, mainly for laptop PCs were sluggish as a result of inventory adjustments of PC manufacturers, etc. With regard to HDD-related components, demand for components to be used in servers and games consoles has grown relatively steadily while growth of the HDD market has stagnated.

With regard to Automotive Components Business, receipt of orders for electronic components expanded steadily, including automotive sensors, which is being supported by progress in automobile electrification during a time when automobile demand is increasing worldwide. An increase in demand for automotive connectors, mainly SMT connectors used in LED headlights, etc. worked as a leading force, and a trend of expansion continued in our Automotive Components Business.

With regard to Equipment Business, in response to a world-wide semiconductor demand against a background of high functionalization of smartphones, automobile electrification, the spread of IoT, etc., semiconductor manufacturers continued active capital investments and as a result, receipt of orders for semiconductor resin sealing devices and molds increased substantially. Automatic taping machines for thin semiconductors also remained a high share and showed steady growth.

Under such circumstances, our consolidated sales increased 6.3 % to 12,623 million yen, compared with the prior year, also our operating income decreased 46.5% to 224 million yen, ordinary loss 259 million yen (We had ordinary income of 48 million yen prior year), and net loss attributable to owners of parent 331 million yen (We had net loss attributable to owners of parent 89 million yen prior year).