Lower yields and higher production costs resulting from orders for large, highly challenging projects

「In addition to increased demand for plating for electronic circuit boards compared with the previous consolidated fiscal year, the company worked to reduce costs and improve yields. As a result, both revenue and segment profit exceeded the previous consolidated fiscal year's levels. Revenue for the fiscal year was ¥4,838 million, up 13.8% year on year, and segment profit was ¥168 million, compared with a segment loss of ¥47 million in the previous consolidated fiscal year.」

「電子回路基板向けのめっき加工の需要が前連結会計年度より増加したことに加え、コスト削減や歩留まりの改善にも取り組んだことから、売上高、セグメント利益ともに前連結会計年度を上回りました。」

「In addition to increased demand for plating for electronic circuit boards compared with the same period of the previous year, the company worked to reduce costs and improve yields. As a result, both revenue and segment profit exceeded the previous year's levels. Revenue for the six months ended the interim period was ¥2,305 million, up 12.6% year on year, and segment profit was ¥90 million, compared with a segment loss of ¥52 million in the same period of the previous year.」

「Demand for plating for automotive components remained weak, and revenue fell below the previous consolidated fiscal year. However, the segment loss improved from the previous consolidated fiscal year as the company worked to reduce costs and improve yields. As a result, revenue for the fiscal year was ¥4,250 million, down 1.1% year on year, and the segment posted a loss of ¥47 million, compared with a segment loss of ¥346 million in the previous consolidated fiscal year.」

「Although demand for plating automotive parts remained weak, demand for plating electronic circuit boards increased, and efforts to reduce costs and improve yield resulted in revenue exceeding the previous year and an improved segment loss. As a result, revenue for the six months ended the interim period was ¥2,047 million, up 1.3% year on year, and the segment loss was ¥52 million, compared with a segment loss of ¥194 million in the same period of the previous year.」

「Revenue fell below the same quarter of the previous year following the withdrawal from the business in Japan. However, at the consolidated subsidiaries in Thailand and Indonesia, yields in the plating operations improved, segment profit increased, and the business returned to profitability. As a result, revenue for the six months ended the second quarter was ¥2,818 million, down 10.6% year on year, and segment profit was ¥73 million, compared with a segment loss of ¥1 million in the same period of the previous year.」

「At the consolidated subsidiaries in Thailand and Indonesia, yields in the plating operations improved, segment profit increased, and the business returned to profitability.」

「Yields also improved at the profit level, resulting in a return to profitability. As a result, revenue for the nine months ended the third quarter was ¥4,872 million, up 33.4% year on year, and segment profit was ¥100 million, compared with a segment loss of ¥155 million in the same period of the previous year.」

「Yields also improved at the profit level, reducing the loss. As a result, revenue for the six months ended the second quarter was ¥3,153 million, up 34.4% year on year, and the segment posted a loss of ¥1 million, compared with a segment loss of ¥126 million in the same period of the previous year.」

「As the automotive industries in Thailand and Indonesia recovered, revenue exceeded the same quarter of the previous year. Segment profit, however, was negative because low yield on plating difficult, large-scale processed parts at the consolidated subsidiary in Indonesia and elsewhere weighed on earnings. As a result, revenue for the three months ended the first quarter was ¥1,530 million, up 30.5% year on year, and the segment loss was ¥32 million, compared with a segment loss of ¥54 million in the same period of the previous year.」

「Revenue from the plating operations increased from the previous consolidated fiscal year as the automotive industries in Thailand and Indonesia recovered. However, the Indonesian consolidated subsidiary recorded a segment loss as yields deteriorated due to an increase in complex, large-scale orders, while production costs rose due to equipment upgrades to accommodate the orders.」

「At the Indonesian consolidated subsidiary, revenue increased as the domestic economy stabilized and the automotive industry began to recover, leading to increased orders for plating on automotive exterior components. However, as orders for complex, large-scale products increased, yields deteriorated, while production costs rose due to equipment upgrades to accommodate the orders. Losses continued at the profit level. As a result, revenue for the nine months ended the third quarter was ¥3,651 million, up 1.3% year on year, and the segment posted a loss of ¥155 million, compared with segment profit of ¥87 million in the same period of the previous year.」

「As orders for complex, large-scale products increased, yields deteriorated, while production costs rose due to equipment upgrades to accommodate the orders. Losses continued at the profit level. As a result, revenue for the six months ended the second quarter was ¥2,345 million, down 3.7% year on year, and the segment posted a loss of ¥126 million, compared with segment profit of ¥69 million in the same period of the previous year.」