I am pleased to report our results for fiscal 2016, ended March 31, 2017.
During the consolidated fiscal year under review, the Japanese economy remained on a modest recovery path, with corporate earnings and employment improving.
In the machine tool industry, the domestic market and the U.S. and European markets both attained modest growth. In theChinese market, signs of recovery were seen in different industrial sectors in and after the third quarter.
In this environment, TSUGAMI Corporation (the “Company”) and its affiliates (the “Group”) sought to boost sales in the automotive component sector and a wide range of other industries. As a result, net sales increased from a year ago. Income also increased from a year ago, reflecting the rise in sales and a gain on sales of non-current assets.
Consolidated net sales for the fiscal year under review increased 2.3% year on year, to 41,050 million yen.
Consolidated net sales in Japan decreased 8.8% year on year, to 10,305 million yen. Consolidated exports increased 6.6% year on year, to 30,744 million yen. The export ratio increased from 71.8% for the previous fiscal year, to 74.9%.
A breakdown of consolidated net sales by machinery category shows that sales of mainstay automatic lathes increased 8.4% year on year, to 34,217 million yen, sales of grinding machines fell 24.3%, to 3,332 million yen, sales of machining centers declined 12.3%, to 500 million yen, and sales of rolling machines and other specialized machines fell 18.1%, to 2,723 million yen.
Consolidated operating income increased 45.1% year on year, to 3,083 million yen. Consolidated ordinary income increased 160.0% year on year, to 2,848 million yen, and net income attributable to owners of the parent jumped 199.8% year on year, to 2,630 million yen.
For the consolidated fiscal year ended March 31, 2017, the Company has decided to pay annual dividends of 16 yen per share, including interim dividends of 8 yen per share and year-end dividends of 8 yen per share.
For the consolidated fiscal year ending March 31, 2018, the Company plans to pay annual dividends of 16 yen per share, including interim dividends of 8 yen per share and year-end dividends of 8 yen per share.
The Group remains committed to consistently enhancing its business performance through higher sales, improved production efficiency and cost cutting, and offering new products that fully meet customer requirements, while enriching the services it provides. Aiming to enhance customer satisfaction, we will devote all of our efforts to management, which can be trusted by our customers.
We respectfully ask for the continued support and encouragement of our shareholders.
Takao Nishijima Chairman and CEO