Consolidated Financial Resultsfor the Second Quarter of the Fiscal Year Ending December 31, 2022
August 8, 2022
ICHIKOH INDUSTRIES, LTD.
Tokyo Stock Exchange, First Section 7 2 4 4
http://www.ichikoh.com/
Christophe Vilatte, President, CEO, Representative director
Masaki Takamori, GM of Cooperate Planning Department
TEL: (0463) 96-1442
Filing of Quarterly Financial Report: August 9, 2022
Date for starting dividends payment: September 6, 2022
Quarterly earnings supplementary explanatory documents: Yes
Quarterly earnings presentation: Yes (Institutional Investor, Analyst)
*Amounts under one million yen have been rounded down.
1.Performance at the end of the Second Quarter as of June 30, 2022 (January 1, 2022 to June 30, 2022)
(1) Consolidated Financial Results | (Millions of yen; percentage figures indicate year-on-year change) | |||||||||||||||||
Net Sales | Operating Income | Ordinary Income | quarterly net income (loss) | |||||||||||||||
attributable to the shareholder | ||||||||||||||||||
parent company | ||||||||||||||||||
% | % | % | % | |||||||||||||||
2nd Quarter (ended on Jun. 30, 2022) | 62,935 | △ 3.8 | 1,121 △ 72.3 | 1,613 | △ 65.5 | 1,266 | △ 57.8 | |||||||||||
2nd Quarter (ended on Jun. 30, 2021) | 65,397 | 26.5 | 4,051 | - | 4,676 | - | 2,999 | - | ||||||||||
(Note) | Comprehensive income: | |||||||||||||||||
Jun. 30, 2022 | 3,615 million yen | ( △15.7 %) Jun. 30, 2021 | 4,286 million yen ( -%) | |||||||||||||||
Net income per | Net income per share- | |||||||||||||||||
share (Yen) | diluted (Yen) | |||||||||||||||||
2nd Quarter (ended on Jun. 30, 2022) | 13.18 | - | ||||||||||||||||
2nd Quarter (ended on Jun. 30, 2021) | 31.21 | - | ||||||||||||||||
(2) Consolidated Financial Position | (Millions of yen; except for per share figures) | |||||||||||||||||
Total Assets | Net Assets | Equity Ratio (%) | ||||||||||||||||
% | ||||||||||||||||||
2nd Quarter (as of Jun. 30, 2022) | 117,269 | 53,618 | 45.1 | |||||||||||||||
FY2021 (as of Dec. 31, 2021) | 112,521 | 49,402 | 43.4 | |||||||||||||||
[Reference] Equity: Second Quarter as of Jun. 30, 2022 52,904 million yen | ||||||||||||||||||
Fiscal Year as of Dec. 31, 2021 | 48,799 million yen | |||||||||||||||||
2. Cash Dividends | ||||||||||||||||||
Cash Dividends per share (Yen) | ||||||||||||||||||
(Cut-off Date) | 1st Quarter | 2nd Quarter | 3rd Quarter | Year-End | Full Year | |||||||||||||
FY2021 (ended on Dec. 31, 2021) | - | 3.50 | - | 3.50 | 7.00 | |||||||||||||
FY2022 (ended on Dec. 31, 2022) | - | 4.50 | ||||||||||||||||
FY2022 (ended on Dec. 31, 2022) [plan] | - | 4.50 | 9.00 | |||||||||||||||
Note: Revision to previous dividend forecast : No |
3. Consolidated Performance Forecasts for the Fiscal Year 2022 (January 1, 2022 to December 31, 2022)
(Millions of yen; percentages indicate changes over the same period in the previous fiscal year)
Net Sales | Operating Income | Ordinary Income | quarterly net income (loss) | Net Income | |||||
attributable to the shareholder | |||||||||
per Share (Yen) | |||||||||
parent company | |||||||||
% | % | % | % | yen | |||||
Full Year | 134,400 | 7.1 | 5,800 | 4.3 | 6,900 | 6.0 | 5,100 | 28.0 | 53.06 |
Note: Revision to previous consolidated performance forecast : No
4. Other | |||
(1) Principal affiliates' transfer in this fiscal term (in accordance with the change of consolidation scope) | No | ||
Added | - | (Corporate name) | |
Excluded | - | (Corporate name) |
- Application of simple accounting as well as specific accounting for preparing the quarterly consolidated financial statements: Applied
- Changes in accounting policies, changes in accounting estimates, and restatement
-
Changes in accounting policies due to revisions to accounting standard: Yes
② Changes in accounting policies due to other reasons: No
③ Changes in accounting estimates: Yes
④ Restatement: No
-
Changes in accounting policies due to revisions to accounting standard: Yes
- Number of issued shares (common stock)
- Number of shares outstanding at the end of the period (including treasury stock)
As of June 30, 2022 | 96,292,401 |
As of December 31, 2021 | 96,292,401 |
- Number of shares of treasury stock at the end of period
As of June 30, 2022 | 176,839 |
As of December 31, 2021 | 176,543 |
- Average number of shares during the period (cumulative)
FY2022 2nd quarter: | 96,115,689 |
FY2021 2nd quarter: | 96,125,539 |
*Quarterly review procedures:
This quarterly financial flash report is out of scope of the review procedures by certified public accountants or auditing firms
*Appropriate use of business forecast; other special items:
Performance Forecasts are based on judgments and estimated that have been made on the basis of currently available information. Change in the company's business environment and in market trends may cause actual result to differ materially from these forecast figures.
1. Qualitative Information on Quarterly Results
(1) Analysis of operating results
In the Japanese economy of the consolidated cumulative period of the second quarter of this fiscal year, the business sentiment in the manufacturing industry deteriorated due to the stagnation of supply chains due to the lockdown of cities in China, and there were also concerns about the risk of an economic recession due to inflation, such as the depreciation of the yen and the surge in resource prices affected by the situation in Ukraine. On the other hand, there are signs of recovery in private consumption due to the alleviation of activity restrictions that recovered the crowds and resulted in recovery of service consumptions.
As for the global economy, in the United States the manufacturing and housing sectors weakened, while private consumption remained firm. In China, due to the implementation of strict movement restrictions in Shanghai and other cities this spring, private consumption decreased and production activity in the manufacturing industry also declined. ASEAN continued to recover moderately amid the continuing spread of the novel coronavirus infections. Thai economy remained sluggish, while Indonesia continued to expand its economy of domestic demand and also external demand of primary commodities, etc. due to the "With Corona" policy. In Malaysia, both domestic and external demand are firm due to the recovery of flow of people from the corona situation and exports mainly for electrical/electronic products, etc.
The automotive industry, to which the company group belongs, due to the impact on the supply chain caused by the Chinese government's tightening of restrictions on activities, the number of vehicles produced in Japan decreased significantly compared year-on-year in the consolidated cumulative period of the second quarter of this fiscal year. The production volume in China also declined year-on-year. On the other hand, automobile production in ASEAN is steady, Malaysia and Indonesia have a significant year-on-year growth, resulting in a significant year-on-year increase in the total of the three countries.
In such an environment, due to the effect of new product launches, the overseas sales increase rate exceeded the market growth rate on a vehicle production volume basis mainly in ASEAN in the consolidated cumulative period for the second quarter of this fiscal year. However, as a result of the decline in sales in the mainstay Japan domestic market and the Company's non-consolidated sales at approximately the same level, sales decreased to 62,935 million yen (down 3.8% year-on-year) on a consolidated basis. Despite cost reductions and productivity improvements, the operating income was 1,121 million yen (down 72.3% year-on- year) due to the impact of declining sales, soaring raw material costs and energy prices, etc., ordinary income was 1,613 million yen (down 65.5% year-on-year) due to the allocation of investment income of 776 million yen by equity method , etc., and net income attributable to the parent company became 1,266 million yen (down 57.8% year-on-year).
Results by each segment are as follows: 1.Auto-Components business
Due to the effect of new product launches, the overseas sales increase rate exceeded the market growth rate on a vehicle production volume basis mainly in ASEAN. However, as a result of the decline in sales in the mainstay Japan domestic market and the Company's non-consolidated sales at approximately the same level, the sales of auto-components business decreased to 59,460 million yen (down 3.3% year-on-year). Despite cost reductions and productivity improvements, the operating income was 966 million yen (down 75.3% year-on-year) due to the impact of declining sales, soaring raw material costs and energy prices, etc.
2.After-Market business
In the after-market business, sales was 4,215 million yen (up 3.2% year-on-year) due to strong sales of winter wipers and sales through the Internet, and operating income was 154 million yen (up 63.7% year-on- year), due to the termination of liquidation of a U.S. after-market sales subsidiary.
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In the previous consolidated fiscal year, the automobile light bulb manufacturing and sales business, which was included in "Other," was abolished from the "Other" category from the first quarter of this fiscal year by the sale of the such business. As a result, from the consolidated cumulative period of the first quarter of this fiscal year, the segments became two segments: "Auto-Components business" and "After-Market business".
In addition, from the beginning of the consolidated accounting period for the first quarter of this fiscal year, "Accounting Standards for Revenue Recognition" (Corporate Accounting Standards No. 29, March 31, 2020, hereafter "Revenue Recognition Accounting Standard"), etc., is applied, and the figures related to the first quarter of the fiscal year ending December 31, 2022 are figures after applying such accounting standards, etc. Also, each type of increase/reduction figures and rates are also calculated by comparisons with the figures after such accounting standards, etc. is applied.
The application of the Revenue Recognition Accounting Standards, etc. is in accordance with the transitional treatment set forth in the proviso to Paragraph 84 of the Revenue Recognition Accounting Standards, and the cumulative impact of retrospectively applying the new accounting policy before the beginning of the first quarter consolidated accounting period is adjusted to the retained earnings at the beginning of the first quarter of this fiscal year.
As a result, the sales for the consolidated cumulative period of the second quarter of this fiscal year decreased by 1,794 million yen, cost of sales decreased by 1,204 million yen, and operating income, ordinary income and net income before income taxes and other adjustments decreased by 590 million yen respectively. In addition, the retained earnings balance increased by 1,031 million yen.
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2. Consolidated Financial Statement
(1) Consolidated Balance Sheets | (Millions of yen) | ||
Previous Fiscal Year End | Second Quarter End | ||
(As of December 31, 2021) | (As of June 30, 2022) | ||
Assets | |||
Current assets | |||
Cash and deposits | 5,720 | 5,844 | |
Notes and accounts receivable-trade | 19,091 | - | |
Notes and accounts receivable - trade, and contract assets | - | 25,290 | |
Electronically recorded monetary claims-operating | 373 | 212 | |
Merchandise and finished goods | 5,475 | 5,694 | |
Work in process | 646 | 2,489 | |
Raw materials and supplies | 4,771 | 5,869 | |
Other | 12,099 | 9,694 | |
Allowance for doubtful accounts | (19) | (28) | |
Total current assets | 48,160 | 55,067 | |
Noncurrent assets | |||
Property, plant and equipment | |||
Buildings and structures, net | 12,248 | 12,336 | |
Machinery, equipment and vehicles, net | 17,793 | 17,923 | |
Tools, furniture and fixtures, net | 6,607 | 2,361 | |
Land | 2,757 | 2,797 | |
Lease assets, net | 2,196 | 2,528 | |
Construction in progress | 3,749 | 3,178 | |
Total property, plant and equipment | 45,352 | 41,124 | |
Intangible assets | |||
Other | 995 | 1,046 | |
Total intangible assets | 995 | 1,046 | |
Investments and other assets | |||
Investment securities | 1,373 | 1,841 | |
Long-term loans receivable | 1,270 | 1,135 | |
Deferred tax assets | 4,486 | 4,093 | |
Other | 10,891 | 12,965 | |
Allowance for doubtful accounts | (7) | (4) | |
Total investments and other assets | 18,013 | 20,030 | |
Total noncurrent assets | 64,360 | 62,201 | |
Total assets | 112,521 | 117,269 | |
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Ichikoh Industries Ltd. published this content on 08 August 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 08 August 2022 08:03:04 UTC.