Pacific Industrial : Financial Results Briefing for FY2023 (With Transcription)
May 19, 2024 at 09:28 pm EDT
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In Q4, due to exchange rate differences resulting from the yen's depreciation, sales increased 7% from the previous year to JPY51.3 billion, while operating income decreased 10% to JPY3.2 billion, mainly due to a decrease in domestic automobile production. For the full year, sales were JPY207.3 billion, operating income was JPY14.4 billion, ordinary income was JPY18.8 billion, and net income was JPY16.9 billion, all record highs.
Net income includes an extraordinary gain of JPY15.5 billion on the sale of investment securities and an extraordinary loss of JPY7.5 billion due to impairment losses on fixed assets at consolidated subsidiaries.
Sales increased JPY16 billion YoY to JPY207.3 billion, mainly due to an increase in sales volume and the positive impact of foreign exchange rates as the yen continued to depreciate, despite a decrease in sales due to the impact of customer-received steel materials for stamping.
Operating income increased JPY5.1 billion YoY to JPY14.4 billion from the increase in sales volume and promotion of cost improvement, despite the negative effects of higher labor and expenses due to increased material volume and soaring material prices.
In the stamping & plastic molding business, sales increased 9% from the previous year to JPY149.9 billion due to an increase in sales volume. Operating income increased JPY5.4 billion to JPY10.3 billion due to an increase in sales volume and improved profitability.
In the valves business, sales increased 5% to JPY57.1 billion due to the impact of yen depreciation. Operating income was flat YoY at JPY4.1 billion, as foreign exchange gains, profit improvement, and price pass-through offset the negative impact of higher overseas parts procurement cost and material price hikes due to yen depreciation.
Sales in Japan decreased 3% to JPY67.9 billion and operating income increased JPY1.2 billion to JPY6.2 billion. Sales in Europe and America increased 24% to JPY96.9 billion and operating income increased JPY4.4 billion to JPY4.3 billion. Sales in Asia were flat YoY at JPY42.4 billion and operating income decreased JPY900 million to JPY2.6 billion.
The new stamping plant has been in full operation since Q3, and profits have declined due to the increase in the preparation costs and amortization expenses. Sales and profits in Q4 declined due to a decrease in the volume of products sold as a result of customers' production line stoppages.
Full-year sales are expected to be JPY200 billion. Although we expect automobile production volume to remain at the same level as the previous year, overall sales are expected to decline due to lower sales of dies and molds, which are collectively recorded at the time of launch, due to the large number of customer's new vehicle model launched in FY2023 and fewer launches in FY2024.
Operating income is projected at JPY11 billion, ordinary income at JPY13 billion, and net income at JPY10 billion.
For the full year, we forecast net sales of JPY200 billion, down JPY7.3 billion from the previous year's JPY207.3 billion. This is due to a decrease in sales volume resulting from lower dies and molds sales, the impact of foreign exchange rates, and lower sales prices.
Although we plan to promote cost improvement, we forecast full-year operating income of JPY11 billion due to the negative impact of price revisions, decreased product volume, and increased labor costs resulting from wage hikes.
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20 May 2024 and is solely responsible for the information contained therein. Distributed by
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PACIFIC INDUSTRIAL CO., LTD. is a Japan-based company mainly engaged in the manufacture and sale of press and resin products, and valve products. The Company operates through two business segments. The Press and Resin Product segment is mainly engaged in the manufacture and sale of wheel caps, engine covers, hood trunk hinges, oil pans and other press and resin products for automobile, as well as press molds, resin molds and other mold products. The Valve Product segment is mainly engaged in the manufacture and sale of tire valves, valve core products, air conditioning valves and other valve products, microcomputer control equipment and other electronic machine products, compressor related products, as well as tire pressure monitoring system (TPMS) products. The Other segment is mainly engaged in the processing of information by computer, the development and sale of software, and the provision of insurance agency service.