Latest Financial Results and Full Year Forecast
Consolidated Financial Results for the Third Quarter Ended December 31, 2018
In the nine-month period ended December 31, 2018, the global economy that had been supported by strong consumption thus far showed signs of decline due to economic slowdown in China and falling resource prices. Looking ahead, caution is warranted with regard to economic trends in China as well as internal affairs and diplomatic issues in the United States, the unclear outlook for negotiations regarding the United Kingdom’s withdrawal from the European Union, and exchange rates and economic trends in emerging countries. The Company’s revenue for the nine-month period ended December 31, 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)
3Q Results |
3Q Results |
Difference | ||
|---|---|---|---|---|
| Revenue | 1,353.6 | 1,410.6 | +57.0 |  |
| Gross Profit | 168.9 | 181.8 | +12.9 | |
| Profit for the period attributable to owners of the Company | 44.8 | 53.7 | +8.9 | |
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_190205.png)
(Billions of Yen)
| FY2017 3Q | FY2018 3Q | Difference | |
|---|---|---|---|
| Automotive | 6.0 | 5.0 | (1.0) |
| Aerospace & Transportation Project | 1.8 | 2.9 | +1.1 |
| Machinery & Medical Infrastructure | 4.6 | 1.6 | (3.0) |
| Energy & Social Infrastructure | (2.3) | 3.2 | +5.5 |
| Metals & Mineral Resources | 15.1 | 23.6 | +8.5 |
| Chemicals | 6.9 | 7.0 | +0.1 |
| Foods & Agriculture Business | 4.6 | 2.7 | (1.9) |
| Retail & Lifestyle Business | 4.2 | 4.8 | +0.6 |
| Industrial Infrastructure & Urban Development |
0.5 | (0.2) | (0.7) |
| Other | 3.4 | 3.1 | (0.3) |
Factor behind year on year change in earnings
- ■Automotive ¥ 5.0 billion (down ¥ (1.0) billion YoY)
- Despite earnings contributions from newly consolidated subsidiaries, decreased due to impacts of currency depreciation on Russian wholesale operations and higher tax expenses following sale of investments accounted for using the equity method
- ■Aerospace & Transportation Project ¥2.9 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 ¥ 1.6 billion (down ¥ (3.0) billon YoY)
- Decreased due to absence of revenue associated with infrastructure projects recorded in the previous equivalent period
- ■Energy & Social Infrastructure ¥3.2 billion (up ¥5.5 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 ¥23.6 billion (up ¥ 8.5 billion YoY)
- Increased due to higher prices and transaction volumes of coal and other resources
- ■Chemicals ¥7.0 billion (up ¥ 0.1 billion YoY)
- Almost unchanged year on year
- ■Foods & Agriculture Business ¥2.7 billion (down ¥ (1.9) billion YoY)
- Decreased due to higher material costs and lower sales volumes in overseas fertilizer businesses
- ■Retail & Lifestyle Business ¥4.8 billion (up ¥0.6 billion YoY)
- Increased due to strong performance in all businesses
- ■Industrial Infrastructure & Urban Development ¥ (0.2) billion (down ¥(0.7) billion YoY)
- Decreased due to fewer overseas industrial parks turned over
- ■Other ¥3.1 billion (down ¥(0.3) billion YoY)
Commodity Prices and Exchange Rates
| FY2017 Results (Apr.-Dec.'17 Avg.) |
FY2018 Initial Assumption (Annual Avg.) |
FY2018 Results (Apr.-Dec.'18 Avg.) |
|
|---|---|---|---|
| Crude oil (Brent) | US$54.8 / bbl | US$60.0 / bbl | US$73.1 / bbl |
| Thermal Coal *1 | US$91.0 / t | US$85.0 / t | US$109.1 / t |
| Exchange rate *2 | \111.8 / US$ | \105.0 / US$ | \111.3 / 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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