Freund : Results of Operations for the First Quarter of the Fiscal Year Ending February 28, 2023
July 14, 2022
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FREUND CORPORATION
(Securities code: 6312)
Results of Operations for the First Quarter of the Fiscal Year Ending February 28, 2023
July 15, 2022
Copyright(C) 2022 Freund Corp. All rights reserved.
Consolidated Financial Summary for the First Quarter of FY2/23
Copyright(C) 2022 Freund Corp. All rights reserved.
Consolidated Financial Summary
Sales and earnings down YoY with losses at all levels.
The chemicals business performed well but the machinery business was impacted by delays in the recognition of certain sales due to prolonged procurement of parts and materials, mainly in the U.S.
There were losses in 1Q FY2/20 and 1Q FY2/21. Although there was a profit in 1Q FY2/22, the 1Q FY2/23 returned to a loss.
(Millions of yen)
FY2/22
FY2/23
YoY Change
FY2/23
Q1
Q1
%
Forecasts
Net sales
3,957
3,535
(421)
(10.6)
18,500
Operating profit
157
(104)
(261)
－
700
Ordinary profit
168
(43)
(212)
－
720
Profit
119
(45)
(165)
－
450
Earnings per share (yen)
7.15
(2.73)
(9.88)
－
26.87
Depreciation
167
133
(33)
(20.2)
－
R&D expenses
152
143
(8.0)
(5.9)
－
Dividend
－
－
－
－
20.00
Copyright (C) 2022 Freund Corp. All rights reserved.
2
Machinery Business: Overview
Net Sales
Sales were down because ofthe recognition of some sales in Japan was delayed. The long time needed to procure semiconductors and other parts also affected sales.
Outside Japan, there was a big decrease in sales at the U.S. subsidiary because of the U.S. labor shortage and the effect of supply chain disruption on procuring parts.
Operating profit
There was an operating loss mainly because of the sluggish sales and loss at a U.S. subsidiary.
Orders received and order backlog
Orders were strong, mainly in Japan, and the order backlog increased to an all-time high.
(Millions of yen)
FY2/22
FY2/23
YoY change
Q1
Q1
%
Net sales
2,651
2,080
(570)
(21.5)
Operating profit
75
(156)
(232)
－
Orders received
3,132
4,043
＋910
+29.1
Order backlog
7,175
13,026
＋5,850
＋81.5
Copyright (C) 2022 Freund Corp. All rights reserved.
3
Machinery Business: Group Company Performance (Sales/Operating Profit)
Freund Corporation:
Sales and earnings in Japan were down resulting from delays in some projects.
Freund-Vector:
The loss increased as sales declined significantly due to prolonged lead time
caused by shortages of parts and late deliveries of the parts from vendors;
sales were insufficient to cover fixed expenses.
Freund-Turbo:
Sales were the same as one year earlier and operating profit increased due
to higher sales of high-margin products; the loss decreased as a result.
Cos.Mec:
Sales increased. Turned into profitable led by improved profit margins mainly
by better capacity utilization.
(Millions of yen)
FY2/22
FY2/23
YoY change
FY2/23
Q1
Q1
%
Forecasts
Net sales
2,651
2,080
(570)
(21.5)
12,700
FREUND CORPORATION
1,645
1,189
(455)
(27.7)
－
FREUND‐VECTOR
605
446
(158)
(26.2)
－
FREUND‐TURBO
311
323
+12
+3.9
－
Cos.Mec
165
269
+104
+62.9
－
Operating profit
75
(156)
(232)
－
－
FREUND CORPORATION
170
(13)
(183)
－
－
FREUND‐VECTOR
(25)
(185)
(159)
－
－
FREUND‐TURBO
(11)
(1)
+10
－
－
Cos.Mec
(20)
47
+67
－
－
Copyright (C) 2022 Freund Corp. All rights reserved.
4
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Freund Corporation published this content on 15 July 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 09 August 2022 02:05:01 UTC.
Freund Corporation is a Japan-based company primarily engaged in the manufacture and sale of machinery and chemical products. The Company operates through two business segments. The Machinery segment is engaged in the manufacture and sale of powder and granular machinery, measuring instrument and components, the construction of granular machinery plants, as well as the contracted manufacture of fine grinding of synthetic resin. The Chemical Product segment is involved in the manufacture and sale of pharmaceutical excipients and nutritious supplements, the manufacture of food preservatives, the development and research of pharmaceuticals, food and chemicals, the review of prescriptions, the contacted manufacture and brokerage of study drugs, as well as the development and technology licensing of new dosage forms.
FREUND CORPORATION 
