January 10, 2023
The third-quarter financial results for the fiscal years ending November and December 2022 of 10 major FA-related companies have come in. Despite ongoing concerns such as the re-expansion of COVID-19 infections, global inflation, and Russia’s invasion of Ukraine, overall market performance remains strong worldwide. The depreciation of the Japanese yen has also had an impact on their sales and profits.
The global economy has generally been showing signs of recovery during the third quarter of the fiscal year ending November 30, 2022 and the fiscal year ending December 31, 2022.
On the other hand, economic uncertainty persists, as the effects of the re-spread of COVID-19 infections, Russia’s invasion of Ukraine, and inflationary trends, particularly in the oil and energy sectors, continue to be felt. In addition, the Japanese yen has depreciated against the U.S. dollar due to differences in financial policies with other countries in Japan.
FA companies generally had strong performance. Out of the eight companies using Japanese GAAP, six can make comparisons with the same period of the previous year. Five companies saw increases in both sales and profits in terms of ordinary income, while one company experienced an increase in sales but a decrease in profit. The two companies using International Financial Reporting Standards (IFRS) both saw increases in both sales and profits on a pre-tax income basis.
NACHI-FUJIKOSHI commented, “Despite production adjustments in the automotive sector, demand for general industrial machinery and consumer equipment recovered and expanded. Construction machinery also performed well. In addition to productivity improvements and cost reductions in purchasing, the yen’s depreciation led to an increase in various profits”. STAR MICRONICS also cited favorable demands in the medical sector in the U.S., the automotive sector in Europe and Asia, and a range of industries in Japan.
However, there are some signs that the market may be slowing down in China. Sodick attributed this to a peak in demand for smartphones and consumer electronics and a reduction in appetite for capital investment due to strict COVID-19 measures. As a result, the company has revised its full-year forecasts for sales and ordinary income downward, citing the slowdown in China as the main reason.