North American market development through a U.S. subsidiary

「Capital investment continued, supported by the reshoring of manufacturing and the strengthening of local production systems, while sales to existing major customers remained firm. Sales driven by customer diversification also remained solid, and sales centered on hand nut runners grew, resulting in net sales exceeding those of the same quarter of the previous year.」

「Although results were affected by the adjustment in EV-related investment and delays in project decision-making, capital investment by automakers in North America remained firm amid growing demand for local production and local procurement against the backdrop of trade policy. Revenue began to recover, led by hand nutrunners and screw fastening equipment. Hand nutrunner revenue increased year on year, while screw fastening equipment revenue rose sharply as large projects progressed. The local subsidiary also posted record-high sales, and the North American market as a whole showed signs of recovery.」

「In response to the above market environment, particularly the slowdown in EV market growth and policy changes that have brought the weakness in capital investment to the fore, revenue for the current interim consolidated accounting period exceeded the year-earlier period but fell short of the initial plan.」

「The U.S. economy remains in a prolonged adjustment phase for capital investment, as indicated by slowing personal consumption and deterioration in the manufacturing business conditions index. Investment activity is showing signs of slowing as investors assess factors affecting investment decisions, including the timing of future rate cuts and the outcome of the presidential election.」

「Sales of our products exceeded the same period of the previous year in the first quarter, but remained soft against budget. We will focus on converting orders as each customer executes its budget going forward.」

「Sales of our products have seen a gradual broadening of the customer base, particularly among new US automotive parts and agricultural equipment manufacturers. Along with a broader customer base, higher sales from relatively new customers and the positive effect of the weaker yen, all product categories, led by hand nutrunners, exceeded the same period of the previous year.」

「Sales of our products have seen a gradual broadening of the customer base beyond existing customers, and all product categories, led by hand nutrunners, exceeded the same period of the previous year.」

「Although sales in dollar terms fell below the previous year because supply volume restrictions from Japan due to the semiconductor shortage limited sales volumes, consolidated yen-denominated sales exceeded the previous year as a result of the substantial year-on-year depreciation of the yen.」

「Under these conditions, capital investment plans in the automotive industry remained active. As in the second quarter, orders from Japanese automakers, agricultural equipment manufacturers, US automakers and EV-related companies all remained firm.」

「As a result, sales for the current consolidated fiscal year remained firm, as capital investment by Japanese automakers and Japanese construction and agricultural equipment manufacturers continued at a steady pace from the previous year. In addition, new customers, including existing and emerging EV manufacturers, gradually expanded their orders, supporting firm performance for hand nutrunners and labor-saving equipment incorporating hand nutrunners.」

「By product category, hand nutrunner sales increased substantially, driven by demand for new production lines at US automakers. Current orders have also remained firm since the second quarter, mainly from Japanese and US automakers and US agricultural equipment manufacturers, and the company forecasts firm performance in the fourth quarter as well.」

「By product category, hand nutrunner sales have temporarily plateaued, but orders have remained firm since the first quarter, mainly from Japanese and US automakers and US agricultural equipment manufacturers. The company forecasts firm performance from the third quarter onward.」

「By product category, orders from Japanese automakers and Japanese agricultural and construction equipment manufacturers remained firm for the second consecutive year, mainly for hand nutrunners. The company also received new orders from a US electric vehicle manufacturer, and overall performance remained firm.」

「Although corporate earnings declined substantially and capital investment also fell sharply due to the impact of COVID-19, capital investment by our major customers showed a relatively early recovery, and sales exceeded the same period of the previous year, mainly for hand nutrunners.」

「Although the company was operating in a challenging environment, the consolidation period for the US subsidiary in the cumulative first-quarter period was January to March, before the impact of COVID-19 emerged. Against a backdrop of continued active capital investment from the second half of the previous year, hand nutrunners performed firmly.」

「Hand nutrunner sales increased substantially year on year, supported by active capital investment by some Japanese and US automakers. The Michigan sales base opened last year is still in the process of expanding its workforce and strengthening sales activities, mainly targeting US automakers, and its contribution to sales in the current fiscal year is limited.」

「Against this backdrop, our US sales organization has been expanding its workforce nationwide, including at the local sales base in Kentucky and the sales base newly opened this year in Michigan. Sales of hand nutrunners, mainly to Japanese and US automakers, have remained firm.」

「Against this backdrop, large projects postponed in the previous year began to move forward during the cumulative first-quarter period, and performance remained relatively firm, mainly for hand nutrunners.」

「Although market conditions in the US remained generally firm, sales fell below the initial forecast because Japanese and US automakers have a high degree of dependence on certain customers and large projects initially expected to be ordered by those customers were postponed.」

「Employment and income conditions remained favorable and personal consumption remained firm, but sales continued below the initial forecast, partly because large projects for which orders had initially been expected were postponed amid concerns about an economic downturn, including a slower pace of rate hikes due to the year-end stock market decline and concerns about an economic slowdown caused by intensifying trade friction.」

「Employment and income conditions remained favorable and personal consumption remained firm, but sales continued below the initial forecast, partly because large projects for which orders had been expected were postponed amid concerns about the adverse economic impact of intensifying trade friction.」

「Although uncertainty about the outlook due to trade friction and other factors remained, personal consumption and corporate earnings continued to improve, and capital investment in the automotive industry remained firm. In the US, sales of hand nutrunners, our main product line, declined from the previous quarter in the first quarter because of a large sale in the same period of the previous year, but sales and orders remained firm.」

「Personal consumption expanded steadily against a backdrop of improved employment and income conditions, while capital investment in the automotive industry also remained firm. Orders from US automakers increased in addition to those from Japanese automakers, mainly for hand nutrunners, resulting in sales substantially above the initial forecast. Japan　2,314,100　China　568,201　US　1,329,348　Other　769,488　Total　4,981,138」

「Personal consumption expanded steadily against a backdrop of improved employment and income conditions, while capital investment in the automotive industry also remained firm. Orders from US automakers increased in addition to those from Japanese automakers, mainly for hand nutrunners, resulting in sales substantially above the initial forecast.」

「Capital investment in the automotive industry remained firm against a backdrop of a strong US economy. Orders from US automakers increased in addition to those from Japanese automakers, mainly for hand nutrunners, resulting in sales substantially above the previous year.」

「Orders in the US, mainly for hand nutrunners, have remained firm.」

「In overseas markets, automotive manufacturers in the US continued to make active capital investments against a backdrop of a steady economic recovery. We expanded sales, particularly to Japanese automakers, by strengthening our sales and maintenance systems, including through additional staff at our US sales subsidiary.」

「In overseas markets, sales of hand nutrunners increased substantially year on year in the US and China, and overall performance remained firm.」

「In overseas markets, sales of hand nutrunners increased substantially year on year in the US and China, although sales in South Korea declined year on year, and overall performance remained firm.」

「We established a local subsidiary two years ago. As a result of actively pursuing sales to Japanese automakers and developing and reviewing local distributors, our results have expanded year by year.」