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To our shareholders and investors
Firstly I would like to express sincere gratitude for your support to Nippon Piston Ring (NPR) group.
Last year’s Japanese economy was under difficult circumstances such as sluggish personal consumption, worsening of the employment environment and rapid yen’s-appreciation, but its recovery is being viewed in production activities that stagnated due to influence of the earthquake disaster. In the world economy business condition as a whole showed gradual recovery owing to the firm progress of newly industrializing countries such as India, while there still remain risks of business stagnation such as staying at high unemployment rate in Europe and the US and financial anxiety in European countries.
In the automobile industry that NPR group is involved in, in the first half of fiscal 2011 domestic production was 3.9 million units resulted in 18.5% decrease year-on-year because of influence of the earthquake. Domestic sales were 1.93 million units resulted in 23.7% decrease and export was 1.98 million units 16.7% decrease year-on-year respectively.
NPR group achieved sales of ￥23,941 million in the first half of fiscal 2011 resulted in 1.1% increase year-on-year owing to firm progress of continued purchase order mainly from abroad and also recovery of domestic order.
With regard to profit an loss, although ordinary profit was ￥1,509 million resulted in 3.0% decrease year-on-year due to influence of the earthquake and foreign exchange fluctuation, interim net profit was ￥1,317 million resulted in 9.2% increase year-on-year by appropriating a sales profit of related company’s land to special profit.
In the severe circumstances of management such as the financial anxiety of European countries and progress of yen’s-appreciation, although production of automobile industries shows recovery undertone, NPR group has implemented various measures such as cost-reduction activities under our basic guideline “Start on business structural reform (Improve efficiency of human, material and financial resources)” in the 4th middle-term management plan (fiscal years from 2009 to 2011) and will continuously press ahead with the business structural reform in the 5th middle-term management plan (fiscal years from 2012 to 2014) commencing April this year and work on further improvement of corporate value by implementing various initiatives such as global sales expansion, arrangement of supply system and growing new products to business items.
Shareholders’ continued support and understanding will be greatly appreciated.
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President and Representative Director
Shigeo Takahashi |
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