Increase in revenue and profit thanks to robust overseas demand for automotive upholstery material
In the current second quarter, the Japanese economy showed a trend toward gradual recovery thanks to government economic policies and other factors, resulting in improvements in corporate earnings, although our business environment has continued to be severe because of a backlash from the last-minute surge in demand before the rise in the consumption tax, steep increases in the prices of raw materials (including dyes, auxiliaries and chemicals) and energy, and other factors. With regard to the global economy, we have seen a gradual economic recovery in the United States of America, while noting signs of economic slowdown, such as deceleration of economic growth in China and other emerging economies, making the global economic outlook uncertain.
Under these circumstances, Seiren Group, with “Reform into a 21st century company!” as its medium-term policy, is working on its medium-term business strategy, the pillars of which are the “creation of new business” and “global business expansion,” in order to ensure that it always meets its customers’ needs, to secure stable revenue, and to achieve continuous growth even in a continuously changing business environment. Further, we are promoting enhancement of our corporate structure by implementing measures such as development of human resources required to carry out our medium-term business strategy and improvement of our organizational functions, along with strengthening our earning capacity through productivity improvement, operation efficiency improvement and streamlining, and thorough cost reduction.
With regard to our consolidated business performance in the current second quarter, net sales were 50.311 billion yen (7.6% increase compared with the previous corresponding quarter), operating income was 2.820 billion yen (21.1% increase compared with the previous corresponding quarter), ordinary income was 3.117 billion yen (18.9 % increase compared with the previous corresponding quarter), and net income was 1.978 billion yen (33.3% increase compared with the previous corresponding quarter).
Chairman and C.E.O. Tatsuo Kawada