Miwa Kazuhiko (Executive Officer, Executive General Manager of Financial Div.)
【Summary】
What are the assumptions behind the revision of the earnings forecast on a quarterly basis?
We have revised upward our sales forecast by JPY20 billion from the initial forecast. Since Orders received in the first quarter were stronger than expected and firm demand is expected in the second quarter as well, we added about 30% in the first half and about 70% in the second half considering the lead time from order received to sales.
What is the situation of the supply chain for components and raw materials and transportation costs?
As for the components, we expect that there is no particular impact in production of the first half. However, procurement after the second half of the fiscal year and beyond is still uncertain. The increase in steel prices is expected to be a factor for the decrease in profits by about JPY1 billion compared to the previous fiscal year. As for transportation costs, we assume that the impact will be minimal because we do not use container ships mainly.
How were the orders received overseas?
In North America, since the fiscal policy of the US had a huge positive impact on the order demand, orders received for the first quarter were the highest-ever in all past quarters. In Europe, all four major countries -Germany, France, Italy, and the UK performed well, in addition to these countries, Eastern Europe and Northern Europe also performed well. In Asia, sales were strong in China and Taiwan. In the ASEAN region, we are seeing an increase in orders, but we are not optimistic due to the spread of new variants of COVID-19.
Are there any changes in delivery times caused by the shortage of materials?
We do not expect to reduce production at this time, although it may take longer delivery times from the second half of the year due to problems in the supply chain such as procurement of parts and materials.
Do you have any concerns in predicting the future situation?
We are not particularly concerned about our production capacity, as our new plant in North America is now in operation, and we plan to use temporary staff to handle our manufacturing workforce. However, there is uncertainty about the supply chain mainly on procurement.
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Amada Co. Ltd. published this content on 21 August 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 21 August 2021 09:03:01 UTC.
Amada Holdings Co. Ltd. specializes in manufacturing, renting and marketing processing machines. The group also provides maintenance and repair services. Net sales break down by family of products as follows:
- metallurgy machines (80.3): primarily laser and welding machines, cutting and degreasing machines, bending and pressing machines;
- machine tools (19.3%): sawing machine, grinders, etc.;
- other (0.4%).
Net sales are distributed geographically as follows: Japan (45.5%), China (4.1%), Asia (10.1%), Europe (18.7%) and North America (21.6%).
AMADA HOLDINGS CO. LTD. 
