I am pleased to report our results for the first half of fiscal 2016, ending March 31, 2017.
During the first half of the consolidated fiscal year under review, the Japanese economy had an uncertain outlook, with stagnation in corporate earnings and capital expenditure given the continued appreciation of the yen.
In the machine tool industry, the domestic market was rather weak as a whole, although it reflected some positive effect from the subsidies for manufacturing. In overseas markets, the European and U.S. economies both began to slow, although they had been on an upward trend. The Chinese market is still sluggish, although it is showing some partial signs of recovery.
In this environment, consolidated net sales of TSUGAMI Corporation (the “Company”) and its affiliates (the “Group”) for the first half under review stood at 18,401 million yen, down 13% year on year. Despite this, consolidated operating income increased 9.9% year on year, to 1,452 million yen. Consolidated ordinary income increased 24.7% year on year, to 1,057 million yen. Net income attributable to owners of the parent also increased 7.4% year on year, to 730 million yen.
The Company decided to pay an interim dividend of 8 yen per share according the initial plan and plans to pay a year-end dividend of 8 yen per share (for an annual dividend of 16 yen per share) in the fiscal year ending March 31, 2017.
We respectfully ask for the continued support and encouragement of our shareholders.
Takao Nishijima Chairman and CEO