Latest Financial Results and Full Year Forecast
Consolidated Financial Results for the First Half Ended September 30, 2018
In the six-month period ended September 30, 2018, conditions in the global economy proved firm due to the support of growth in developed countries witnessing strong consumption as well as in emerging countries. Resource prices were likewise solid. Meanwhile, caution is warranted going forward with regard to the potential impact of U.S. interest rate hikes and trade negotiations and Middle Eastern instability on foreign exchange rates, commodity prices, and emerging economies. The Company’s revenue for the six-month period ended September 30, 2018, was up year on year due to increased sales in the Metals & Mineral Resources Division, a result of rises in prices and transactions volumes for coal and other resources, and in the Automotive Division, a result of the acquisition of new domestic and overseas automotive dealership and other businesses. Profit for the period (attributable to owners of the Company) rose year on year thanks to higher gross profit and gains on sales of automobile-related companies.
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(Billions of Yen)
2Q Results |
2Q Results |
Difference | ||
|---|---|---|---|---|
| Revenue | 884.0 | 941.8 | +57.8 |  |
| Gross Profit | 111.5 | 120.9 | +9.4 | |
| Profit for the period attributable to owners of the Company | 27.2 | 37.1 | +9.9 | |
Changes of Yearly Financial Results (Cumulative)
Segment Performance [Profit for the period attributable to owners of the Company]
![Segment Performance [Profit for the Period (Attributable to owners of the Company)]](img/img02e_181101.png)
(Billions of Yen)
| FY2017 2Q | FY2018 2Q | Difference | |
|---|---|---|---|
| Automotive | 4.3 | 3.6 | (0.7) |
| Aerospace & Transportation Project | 0.8 | 1.9 | +1.1 |
| Machinery & Medical Infrastructure | 2.8 | 0.7 | (2.1) |
| Energy & Social Infrastructure | (3.2) | 2.7 | +5.9 |
| Metals & Mineral Resources | 9.5 | 16.2 | +6.7 |
| Chemicals | 4.8 | 4.8 | 0.0 |
| Foods & Agriculture Business | 4.3 | 2.1 | (2.2) |
| Retail & Lifestyle Business | 2.7 | 3.3 | +0.6 |
| Industrial Infrastructure & Urban Development |
0.0 | (0.1) | (0.1) |
| Other | 1.2 | 1.9 | +0.7 |
Factor behind year on year change in earnings
- ■Automotive ¥ 3.6 billion (down ¥(0.7) billion YoY)
- Despite earnings contributions from newly consolidated subsidiaries, decreased due to higher tax expenses following sale of investments accounted for using the equity method
- ■Aerospace & Transportation Project ¥ 1.9 billion (up ¥ 1.1 billion YoY)
- Increased due to gains on sales of aircraft and earnings contributions accompanying progress in railroad projects
- ■Machinery & Medical Infrastructure ¥ 0.7 billion (down ¥(2.1) billon YoY)
- Decreased due to absence of revenue associated with infrastructure projects recorded in the previous equivalent period
- ■Energy & Social Infrastructure ¥ 2.7 billion (up ¥ 5.9 billion YoY)
- Increased due to absence of one-time loss on oil and gas interests recorded in the previous equivalent period and a gain on the sale of an overseas solar power business operating company
- ■Metals & Mineral Resources ¥ 16.2 billion (up ¥ 6.7 billion YoY)
- Increased due to higher prices and transaction volumes of coal and other resources
- ■Chemicals ¥ 4.8 billion (relatively unchanged YoY)
- Unchanged year on year
- ■Foods & Agriculture Business ¥ 2.1 billion (down ¥ (2.2) billion YoY)
- Decreased due to higher material costs and lower sales volumes in overseas fertilizer businesses
- ■Retail & Lifestyle Business ¥ 3.3 billion (up ¥ 0.6 billion YoY)
- Increased due to strong performance in all businesses
- ■Industrial Infrastructure & Urban Development ¥ (0.1) billion (down ¥(0.1) billion YoY)
- Unchanged year on year
- ■Other ¥1.9 billion (up ¥0.7 billion YoY)
Commodity Prices and Exchange Rates
| FY2017 Results (Apr.-Sep.'17 Avg.) |
FY2018 Assumption (Annual Avg.) |
FY2018 Results (Apr.-Sep.'18 Avg.) |
|
|---|---|---|---|
| Crude oil (Brent) | US$51.5 / bbl | US$60.0 / bbl | US$75.4 / bbl |
| Thermal Coal *1 | US$86.1 / t | US$85.0 / t | US$111.5 / t |
| Exchange rate *2 | \111.3 / US$ | \105.0 / US$ | \110.7 / US$ |
- *1
- The results in the above table are cited from the GlobalCOAL NEWC Index and differ from our sales prices.
- *2
- Impact of exchange rate fluctuations on earnings: ¥1/US$ change alters gross profit by approx.
¥0.5 billion annually, profit for the year (attributable to owners of the Company) by approx. ¥0.25 billion annually, and total equity by approx. ¥2.0 billion annually.
Full Year Forecast of Fiscal Year Ending March 31, 2019
(Billions of Yen)
| FY2017 Results |
FY2018 Forecast |
Difference |
|
|---|---|---|---|
| Gross Profit | 232.4 | 240.0 | +7.6 |
| Profit for the year attributable to owners of the Company | 56.8 | 70.0 | +13.2 |
Segment Performance [Profit for the year attributable to owners of the Company] Initial Forecast
Segment Performance [Profit for the year attributable to owners of the Company] Revised Forecast
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