Decline in revenue and profit due to lower sales volume

「損益につきましても、販売数量増を主要因に営業利益356百万円（前年同四半期比77.1％増）、経常利益410百万円（前年同四半期比79.6％増）、親会社株主に帰属する四半期純利益は259百万円（前年同四半期比80.7％増）と増益となりました。」

「As a result, sales volume increased 1.6% from the previous fiscal year, and net sales increased 4.6% from the previous fiscal year to ¥25,572.238 million. Despite the impact of wage increases to secure personnel, operating profit rose 32.6% to ¥886.860 million, ordinary profit rose 33.2% to ¥966.387 million, and net income attributable to owners of the parent rose 35.7% to ¥611.832 million, supported by the full implementation of product selling-price revisions following steel price increases, in addition to the previously mentioned processing-charge adjustments, and reductions in energy intensity.」

「これらの結果、販売数量は前年度に対して1.6％増加し、売上高は25,572百万円（前期比4.6％増）と増収となりました。損益につきましても、人財確保に向けた賃金アップ等による影響があったものの、先述の加工賃是正に加え鋼材値上げによる製品販売価格改定のフル浸透、及びエネルギー原単位の削減等により、営業利益は886百万円（同32.6％増）、経常利益は966百万円（同33.2％増）、親会社株主に帰属する当期純利益は611百万円（同35.7％増）と増益となりました。」

「As a result, sales volume declined 0.8% year on year, but net sales increased 5.8% year on year to ¥12,672 million. Despite the impact of lower sales volume and wage increases to secure personnel, operating profit rose 47.2% year on year to ¥447 million, ordinary profit rose 44.2% to ¥483 million, and interim net income attributable to owners of the parent rose 57.6% to ¥301 million, supported by revisions to product selling prices following steel price increases implemented since July of the previous year, the full implementation of processing-charge adjustments, and reductions in energy intensity.」

「As a result, sales volume was 48 thousand tonnes, down 3.9% year on year, while revenue rose 0.4% to ¥11,973 million. Although profitability improved through measures including revisions to product selling prices, sluggish sales volume and the impact of base-pay increases to secure personnel resulted in operating profit of ¥304 million, down 25.7%, ordinary profit of ¥335 million, down 26.1%, and interim net profit attributable to owners of the parent of ¥191 million, down 29.5%.」

「Sales volume was significantly affected by production cuts at some manufacturers, falling 6.2% from the previous fiscal year to 99 thousand tonnes. Revenue nevertheless rose 0.3% to ¥24,012.108 million, mainly because the effect of price increases in the previous fiscal year was reflected to a different extent. Profit declined primarily due to lower production and sales volume and the reversal of inventory valuation gains generated by higher raw material prices in the previous fiscal year. Operating profit fell 38.4% to ¥595.665 million, ordinary profit fell 37.2% to ¥653.741 million, and net profit attributable to owners of the parent fell 40.1% to ¥386.818 million.」

「As a result, sales volume was 76 thousand tonnes, down 5.9% year on year, while revenue rose 3.1% to ¥18,283 million due to the effect of price increases. Although profitability improved through measures including the correction of processing fees, failure to meet production and sales volume targets resulted in operating profit of ¥574 million, down 37.3%, ordinary profit of ¥627 million, down 35.9%, and net profit attributable to owners of the parent of ¥378 million, down 38.2%.」

「As a result, sales volume was 49 thousand tonnes, down 6.8% year on year, while revenue rose 5.5% to ¥11,928 million due to the effect of price increases. Although profitability improved through measures including the correction of processing fees, the significant impact of failing to meet production and sales volume targets resulted in operating profit of ¥409 million, down 24.0%, ordinary profit of ¥453 million, down 22.1%, and net profit attributable to owners of the parent of ¥271 million, down 21.7%.」

「Against this backdrop, the Group worked across the company to expand sales volume, which was 25 thousand tonnes, down 8.6% year on year. Meanwhile, higher selling prices than in the previous year resulted in revenue of ¥5,958 million, up 8.3%. To absorb higher resource and energy costs, the Group improved profitability through measures including revising processing fees and reducing other costs. Operating profit rose 22.3% to ¥265 million, ordinary profit rose 19.8% to ¥294 million, and net profit attributable to owners of the parent rose 29.5% to ¥178 million.」

「Sales volume declined 5.4% year on year to 81 thousand tonnes, but revenue rose 14.9% to ¥17,739 million. Earnings also benefited from improvements such as the correction of processing fees, resulting in operating profit of ¥916 million, up 12.4%, ordinary profit of ¥978 million, up 10.8%, and net profit attributable to owners of the parent of ¥612 million, up 19.0%.」

「Sales volume declined 7.1% year on year to 53 thousand tonnes, but revenue rose 12.3% to ¥11,304 million. Earnings also benefited from improvements such as the correction of processing fees, resulting in operating profit of ¥538 million, up 13.4%, ordinary profit of ¥582 million, up 11.3%, and net profit attributable to owners of the parent of ¥346 million, up 15.7%.」

「As a result, sales volume was 27 thousand tonnes, down 8.2% year on year, while revenue rose 8.3% to ¥5,500 million. Although profit improved through revisions to processing fees and other measures, higher manufacturing expenses per tonne associated with lower production volume resulted in operating profit of ¥217 million, down 4.5%, ordinary profit of ¥245 million, down 2.8%, and net profit attributable to owners of the parent of ¥137 million, down 2.3%.」

「As a result, sales volume increased 11.3% from the previous fiscal year to 113 thousand tonnes, and revenue rose 22.9% to ¥21,070.268 million. Due to higher revenue and lower manufacturing expenses per tonne, operating profit rose 627.4% to ¥1,072.646 million, ordinary profit rose 229.8% to ¥1,165.283 million, and net profit attributable to owners of the parent rose 493.9% to ¥669.695 million.」

「As a result, sales volume rose 19.1% year on year to 85 thousand tonnes, and revenue rose 28.1% to ¥15,440 million. Due to higher revenue and lower manufacturing expenses per tonne, the company recorded operating profit of ¥815 million, compared with an operating loss of ¥32 million in the previous year, ordinary profit of ¥883 million, up 561.6%, and net profit attributable to owners of the parent of ¥514 million, compared with a net loss attributable to owners of the parent of ¥16 million.」

「As a result, sales volume was 57 thousand tonnes, up 34.0% year on year, and revenue was ¥10,064 million, up 37.9%. Due to higher revenue and lower manufacturing expenses per tonne, the company recorded operating profit of ¥474 million, compared with an operating loss of ¥171 million in the previous year, ordinary profit of ¥523 million, compared with an ordinary loss of ¥66 million, and net profit attributable to owners of the parent of ¥299 million, compared with a net loss attributable to owners of the parent of ¥134 million.」

「As a result, sales volume was 29 thousand tonnes, up 44.0% year on year, and revenue was ¥5,080 million, up 46.8%. Due to higher revenue and lower manufacturing expenses per tonne, the company recorded operating profit of ¥227 million, compared with an operating loss of ¥101 million in the previous year, ordinary profit of ¥252 million, compared with an ordinary loss of ¥84 million, and net profit attributable to owners of the parent of ¥141 million, compared with a net loss attributable to owners of the parent of ¥130 million.」

「Sales volume was 71 thousand tonnes, down 25.3% year on year, and revenue was ¥12,049 million, down 22.6%. The decline in revenue and relatively higher fixed-cost burden resulted in an operating loss of ¥32 million, compared with operating profit of ¥328 million in the previous year. However, ordinary profit was ¥133 million, down 62.3%, due to the recognition of employment adjustment subsidies and other non-operating income. Meanwhile, the recognition of provision for losses on guarantees and corporate taxes resulted in net loss attributable to owners of the parent of ¥16 million, compared with net profit attributable to owners of the parent of ¥183 million in the previous year.」

「Lower activity levels and the resulting temporary suspension of plant operations forced the Company’s sales and production volumes to decline substantially. Sales volume was 42 thousand tonnes, down 34.9% year on year, and revenue was ¥7,300 million, down 30.9%. The decline in revenue and the resulting burden of fixed costs had a significant impact, resulting in an operating loss of ¥171 million, compared with operating profit of ¥301 million in the previous year, an ordinary loss of ¥66 million, compared with ordinary profit of ¥318 million, and net loss attributable to owners of the parent of ¥134 million, compared with net profit attributable to owners of the parent of ¥174 million.」

「As a result, sales volume was 20 thousand tonnes, down 39.3% year on year, and revenue was ¥3,460 million, down 35.6%. Due to lower revenue and higher manufacturing expenses per tonne, the company recorded an operating loss of ¥101 million, compared with operating profit of ¥211 million in the previous year, and an ordinary loss of ¥84 million, compared with ordinary profit of ¥222 million. Net loss attributable to owners of the parent was ¥130 million, compared with net profit attributable to owners of the parent of ¥124 million in the previous year.」

「As a result of the full-year consolidation effect of 大阪ミガキ株式会社 and continued efforts to pass the previous year's material price increases through to selling prices, revenue increased 4.3% to ¥20,437.684 million. In sales, the Company worked to expand sales volume by developing new customers and promoting VA projects, but demand conditions surrounding the Group remained challenging, and sales volume declined 4.6% to 125 thousand tonnes. Due to lower sales volume and higher manufacturing and selling costs per tonne resulting from lower production, operating profit fell 50.3% to ¥345.391 million, ordinary profit fell 46.2% to ¥376.459 million, and net income attributable to owners of the parent fell 62.3% to ¥158.469 million.」

「In sales, the Group worked to expand sales volume through the consolidation of 大阪ミガキ株式会社 and the development of new customers and projects, but this was insufficient to offset the impact of lower production activity by major customers. Sales volume was 96 thousand tonnes, down 1 thousand tonnes year on year. Meanwhile, continued efforts to pass the previous year’s material price increases on to selling prices resulted in revenue of ¥15,574 million, up 9.7%. Due to lower sales volume and higher manufacturing and selling costs per tonne associated with lower production, operating profit fell 19.9% to ¥328 million, ordinary profit fell 12.4% to ¥354 million, and net profit attributable to owners of the parent fell 29.3% to ¥183 million.」

「Sales volume was 65 thousand tonnes, and revenue rose 15.8% year on year to ¥10,564 million. As a result of efforts to increase gross profit through higher sales volume and contain expense growth, operating profit rose 13.4% to ¥301 million and ordinary profit rose 14.0% to ¥318 million. However, net profit attributable to owners of the parent fell 8.4% to ¥174 million due to differences in the tax burden.」

「As a result, sales volume was 33 thousand tonnes, up 1.7% year on year, and revenue was ¥5,369 million, up 15.8%. Earnings increased with higher revenue, with operating profit rising 32.1% to ¥211 million and ordinary profit rising 21.3% to ¥222 million. However, net profit attributable to owners of the parent fell 5.1% to ¥124 million due to differences in the tax burden.」

「In sales, the Group expanded sales volume through detailed sales activities targeting existing customers and the development of new customers. Sales volume rose 11.0% from the previous fiscal year to 131 thousand tonnes, and revenue rose 13.8% to ¥19,596.355 million. Although earnings were affected by higher material (steel) prices, operating profit rose 40.9% to ¥694.968 million and ordinary profit rose 31.8% to ¥699.445 million through passing the increases on to product prices, expanding sales volume and containing expense growth. In the previous fiscal year, recognition of deferred tax assets resulting from the absorption merger of the wholly owned subsidiary 株式会社サンユウ九州 reduced tax expenses after applying tax effects. As there was no such special factor in the current fiscal year, net profit attributable to owners of the parent rose 0.6% to ¥420.839 million.」

「In sales, efforts to develop new customers and expand sales volume resulted in sales volume of 96 thousand tonnes and revenue of ¥14,200 million, up 11.1% year on year. The Group worked to increase gross profit through higher sales volume and contain expense growth. Because increases in material prices could not be absorbed through internal efforts alone, it focused on passing them on to product prices while seeking customers’ understanding. As a result, operating profit rose 9.8% to ¥409 million and ordinary profit rose 0.8% to ¥404 million. In the third quarter of the previous fiscal year, recognition of deferred tax assets from the absorption merger of the wholly owned subsidiary 株式会社サンユウ九州 reduced tax expenses after applying tax effects. As there was no such special factor in the current third quarter, net profit attributable to owners of the parent fell 41.1% to ¥259 million.」

「Sales volume increased through efforts to develop new customers, reaching 63 thousand tonnes, and revenue rose 11.0% year on year to ¥9,120 million. The Group worked to increase gross profit through higher sales volume and contain expense growth. Because increases in material prices could not be absorbed through internal efforts alone, it focused on passing them on to product prices while seeking customers’ understanding. As a result, operating profit rose 21.5% to ¥265 million and ordinary profit rose 16.4% to ¥279 million. In the second quarter of the previous fiscal year, recognition of deferred tax assets from the absorption merger of the wholly owned subsidiary 株式会社サンユウ九州 reduced tax expenses after applying tax effects. As there was no such special factor in the current second quarter, net profit attributable to owners of the parent fell 43.5% to ¥190 million.」

「Against this backdrop, the Group worked across the company to expand sales volume and contain costs. Sales volume was 33 thousand tonnes, and revenue rose 10.8% year on year to ¥4,636 million. Operating profit rose 35.7% to ¥160 million and ordinary profit rose 41.6% to ¥183 million as higher sales volume increased gross profit. In the first quarter of the previous fiscal year, recognition of deferred tax assets resulting from the absorption merger of the wholly owned subsidiary 株式会社サンユウ九州 reduced tax expenses after applying tax effects. As there was no such special factor in the current first quarter, net profit attributable to owners of the parent fell 50.8% to ¥131 million.」

「Against this backdrop, the Group worked across the company to expand sales volume and reduce costs. Sales volume was 86 thousand tonnes, and revenue rose 12.7% year on year to ¥12,777 million. Although earnings were affected by higher material (steel) prices, the Group passed these increases on to product prices, worked to expand sales volume and reduced costs including fixed costs. As a result, operating profit rose 44.5% to ¥373 million and ordinary profit rose 46.8% to ¥401 million. In addition, the recognition of deferred tax assets resulting from the absorption merger of the wholly owned subsidiary 株式会社サンユウ九州 reduced tax expenses after applying tax effects, among other factors. Net profit attributable to owners of the parent was ¥441 million, up 151.4%.」

「Sales volume was 56 thousand tonnes, and revenue increased 10.8% year on year to ¥8,220 million. Although earnings were affected by higher material (steel) prices, operating profit rose 72.5% to ¥218 million and ordinary profit rose 72.0% to ¥240 million through passing the increases on to product prices, expanding sales volume and reducing costs including fixed costs. In addition, the recognition of deferred tax assets resulting from the absorption merger of the wholly owned subsidiary 株式会社サンユウ九州 effective 1 April 2017 reduced tax expenses after applying tax effects, among other factors. Net profit attributable to owners of the parent rose 280.1% to ¥336 million.」

「Against this backdrop, the Group worked across the company to expand sales volume and reduce costs. Sales volume was 29 thousand tonnes, and revenue rose 12.5% year on year to ¥4,186 million. Although earnings were affected by higher material (steel) prices, the Group passed these increases on to product prices, worked to expand sales volume and reduced costs including fixed costs. As a result, operating profit rose 198.1% to ¥118 million and ordinary profit rose 162.8% to ¥129 million. In addition, the absorption merger of the wholly owned subsidiary 株式会社サンユウ九州 effective 1 April 2017 led to additional recognition of deferred tax assets, and the resulting impact on tax expenses contributed to net profit attributable to owners of the parent of ¥267 million, up 830.7% year on year.」

「Sales volume increased to 112 thousand tonnes, up 1.7% from the previous fiscal year. However, revenue declined 0.1% to ¥15,404.182 million due to lower product selling prices. Although earnings were affected by higher material (steel) prices in the second half, gross profit margin improved as the Group worked to improve yield, reduce costs including energy costs, and improve productivity across the company. Operating profit rose 22.8% to ¥292.181 million, ordinary profit rose 18.6% to ¥312.663 million, and net profit attributable to owners of the parent rose 12.2% to ¥194.863 million.」

「However, the demand environment surrounding the Group remained challenging. Sales volume was 82 thousand tonnes, and revenue was ¥11,332 million, down 2.1% year on year. Although revenue declined, gross profit margin improved as the Group worked to reduce costs, including energy costs, and continued to improve productivity across the company. Consequently, operating profit rose 89.7% to ¥258 million, ordinary profit rose 74.2% to ¥273 million, and net profit attributable to owners of the parent rose 80.7% to ¥175 million.」

「However, the demand environment surrounding the Group remained challenging. Sales volume was 54 thousand tonnes, and revenue was ¥7,417 million, down 3.7% year on year. Although revenue declined, gross profit margin improved as the Group worked to reduce costs, including energy costs, and continued to improve productivity across the company. Consequently, operating profit rose 66.1% to ¥126 million, ordinary profit rose 47.1% to ¥139 million, and net profit attributable to owners of the parent rose 57.2% to ¥88 million.」

「Sales volume was 26 thousand tonnes, and revenue was ¥3,721 million, down 5.3% year on year. In terms of earnings, in addition to the decline in sales volume, manufacturing costs increased as production volume fell. As a result, operating profit was ¥39 million, down 20.6% year on year, ordinary profit was ¥49 million, down 17.5%, and net profit attributable to owners of the parent was ¥28 million, down 17.6%.」