Expanding Production in Southeast Asia and Improving QCD

「In Southeast Asia, revenue rose ¥161 million year on year, or 7.1%, to ¥2,430 million, as sales of office automation equipment and motorcycle-related products remained firm. In terms of earnings, although selling, general and administrative expenses increased, the gross profit margin improved slightly from 34.9% to 35.0%. Operating profit was ¥73 million, up ¥14 million, or 25.6%, and segment profit (ordinary profit) was ¥73 million, up ¥9 million, or 14.8%.」

「In Southeast Asia, sales of products related to office automation equipment and other items remained relatively firm despite sluggish automotive-related sales. Revenue rose ¥17 million year on year, or 1.8%, to ¥1,015 million. In terms of earnings, although the gross profit margin improved from 34.1% to 34.6% and selling, general and administrative expenses declined, the company posted an operating loss of ¥3 million, compared with an operating loss of ¥19 million in the same period of the previous year, and a segment loss (ordinary loss) of ¥6 million, compared with an ordinary loss of ¥21 million in the same period of the previous year.」

「In Southeast Asia, although the automotive industry remained sluggish, orders exceeded the previous fiscal year due to the capture of replacement demand and other factors. Revenue therefore rose ¥383 million year on year, or 20.4%, to ¥2,268 million. In terms of earnings, although the gross profit margin deteriorated from 36.9% to 34.9% and selling, general and administrative expenses increased, higher gross profit accompanying the increase in revenue resulted in operating profit of ¥58 million, up ¥18 million, or 47.7%, and segment profit (ordinary profit) of ¥63 million, up ¥17 million, or 38.0%.」

「In Southeast Asia, private capital investment continued to recover gradually despite regional differences, although automotive-related capital investment remained sluggish in some regions. Revenue rose ¥22 million year on year, or 1.2%, to ¥1,884 million. In terms of earnings, despite higher selling, general and administrative expenses, improved gross profit margins, from 35.1% to 36.9%, and other factors resulted in operating profit of ¥39 million, up ¥17 million, or 78.2%, and segment profit (ordinary profit) of ¥46 million, up ¥11 million, or 34.7%.」

「In Southeast Asia, private capital investment, mainly in the automotive sector, continued to recover gradually despite regional differences. Revenue rose ¥71 million year on year, or 5.2%, to ¥1,462 million. In terms of earnings, the increase in revenue and the improvement in the gross profit margin from 35.6% to 37.6% increased gross profit, which absorbed the increase in selling, general and administrative expenses. Operating profit was ¥47 million, up ¥52 million year on year, compared with an operating loss of ¥5 million in the same period of the previous year, and segment profit (ordinary profit) was ¥53 million, up ¥55 million, compared with an ordinary loss of ¥1 million in the same period of the previous year.」

「In Southeast Asia, private capital investment, mainly in the automotive sector, continued to recover gradually despite regional differences. Revenue rose ¥158 million year on year, or 18.7%, to ¥1,006 million. In terms of earnings, the increase in revenue and the improvement in the gross profit margin from 36.7% to 37.4% increased gross profit, which absorbed the increase in selling, general and administrative expenses. Operating profit was ¥41 million, up ¥54 million year on year, compared with an operating loss of ¥12 million in the same period of the previous year, and segment profit (ordinary profit) was ¥48 million, up ¥57 million, compared with an ordinary loss of ¥9 million in the same period of the previous year.」

「In Southeast Asia, the economy was recovering, mainly on personal consumption, but the pace of recovery in private capital investment was moderate, particularly in the automotive sector. Revenue fell ¥43 million year on year, or 8.9%, to ¥442 million. In terms of earnings, although the gross profit margin improved from 35.1% to 36.7%, the decrease in gross profit accompanying the decline in revenue and other factors resulted in operating profit of ¥5 million, down ¥15 million, or 75.6%, and segment profit (ordinary profit) of ¥12 million, down ¥9 million, or 44.0%.」

「In Southeast Asia, capital investment was generally recovering, although the pace of economic recovery varied by country. Revenue rose ¥80 million year on year, or 4.5%, to ¥1,861 million. In terms of earnings, although the gross profit margin improved from 32.5% to 35.1%, higher selling, general and administrative expenses resulted in operating profit of ¥22 million, an increase of ¥0 million, or 4.0%, year on year.」

「In Southeast Asia, capital investment was generally recovering, although the pace of economic recovery varied by country. Revenue rose ¥123 million year on year, or 9.8%, to ¥1,390 million. In terms of earnings, although the gross profit margin improved from 32.2% to 35.6%, it was insufficient to absorb the increase in selling, general and administrative expenses. The operating loss was ¥5 million, compared with operating profit of ¥12 million in the same period of the previous year, and the segment loss (ordinary loss) was ¥1 million, compared with ordinary profit of ¥19 million in the same period of the previous year.」

「In Southeast Asia, capital investment was recovering under the countries' living-with-COVID policies, but the suspension of plant operations at the Chinese subsidiary restricted sales of its products and other factors limited revenue growth to ¥848 million, up ¥14 million year on year, or 1.8%. In terms of earnings, although the gross profit margin improved from 32.6% to 36.7%, it was insufficient to absorb the increase in selling, general and administrative expenses. The result was an operating loss of ¥12 million, compared with operating profit of ¥4 million in the same period of the previous year, and a segment loss (ordinary loss) of ¥9 million, compared with ordinary profit of ¥10 million in the same period of the previous year.」

「In Southeast Asia, capital investment was recovering under the countries' living-with-COVID policies. Revenue rose ¥67 million year on year, or 16.2%, to ¥485 million. In terms of earnings, an improved gross profit margin, from 33.7% to 35.1%, and higher gross profit accompanying the increase in revenue and other factors resulted in operating profit of ¥20 million, up ¥11 million, or 136.4%, and segment profit (ordinary profit) of ¥22 million, up ¥7 million, or 54.3%.」

「In Southeast Asia, countries pursued living-with-COVID policies and gradually eased behavioral restrictions, supporting a recovery in capital investment. Revenue rose ¥356 million year on year, or 25.0%, to ¥1,781 million. In terms of earnings, an improved gross profit margin, from 29.5% to 32.5%, and higher gross profit accompanying the increase in revenue and other factors resulted in operating profit of ¥21 million, compared with an operating loss of ¥113 million in the same period of the previous year.」

「In Southeast Asia, behavioral restrictions were gradually eased as the spread of COVID-19 peaked, and the economy was recovering despite regional differences. Capital investment was also recovering, resulting in revenue of ¥1,266 million, up ¥191 million year on year, or 17.8%. In terms of earnings, an improved gross profit margin, from 27.7% to 32.2%, and higher gross profit accompanying the increase in revenue and other factors resulted in operating profit of ¥12 million, compared with an operating loss of ¥96 million in the same period of the previous year, and segment profit (ordinary profit) of ¥19 million, compared with an ordinary loss of ¥89 million in the same period of the previous year.」

「In Southeast Asia, the economic recovery was delayed by the spread of COVID-19 associated with the emergence of variants, but some regions showed signs of recovering capital investment. As a result, revenue rose ¥115 million year on year, or 16.0%, to ¥833 million. In terms of earnings, an improved gross profit margin, from 27.9% to 32.6%, and higher gross profit accompanying the increase in revenue and other factors resulted in operating profit of ¥4 million, compared with an operating loss of ¥68 million in the same period of the previous year, and segment profit (ordinary profit) of ¥10 million, compared with an ordinary loss of ¥62 million in the same period of the previous year.」

「In Southeast Asia, although the spread of COVID-19 continued in Indonesia and restrictions on economic activity remained in place, other Southeast Asian countries showed signs of recovering capital investment. As a result, revenue rose ¥50 million year on year, or 13.7%, to ¥418 million. In terms of earnings, an improved gross profit margin, from 29.4% to 33.7%, and higher gross profit accompanying the increase in revenue and other factors resulted in operating profit of ¥8 million, compared with an operating loss of ¥22 million in the same period of the previous year, and segment profit (ordinary profit) of ¥14 million, compared with an ordinary loss of ¥22 million in the same period of the previous year.」

「In Southeast Asia, the decline in appetite for capital investment, mainly in the automotive sectors of Thailand and Indonesia, continued, while the spread of COVID-19 persisted in many regions. As a result, revenue fell ¥985 million year on year, or 40.9%, to ¥1,424 million. In terms of earnings, the decline in the gross profit margin from 33.4% to 29.5% and the decrease in gross profit accompanying the decline in revenue and other factors resulted in an operating loss of ¥113 million, compared with operating profit of ¥229 million in the same period of the previous year.」

「In Southeast Asia, in addition to the decline in appetite for capital investment, mainly in the automotive sectors of Thailand and Indonesia, which had continued since the second half of the previous fiscal year, the continued spread of COVID-19 and resulting restrictions on economic activity caused revenue to fall ¥780 million year on year, or 42.1%, to ¥1,075 million. In terms of earnings, the decline in the gross profit margin from 33.0% to 27.7% and the decrease in gross profit accompanying the decline in revenue and other factors resulted in an operating loss of ¥96 million, compared with operating profit of ¥153 million in the same period of the previous year, and a segment loss (ordinary loss) of ¥89 million, compared with ordinary profit of ¥158 million in the same period of the previous year.」

「In Southeast Asia, in addition to the decline in appetite for capital investment, mainly in the automotive sectors of Thailand and Indonesia, which had continued since the second half of the previous fiscal year, restrictions on economic activity due to the spread of COVID-19 and other factors caused revenue to fall ¥606 million year on year, or 45.8%, to ¥718 million. In terms of earnings, the decline in the gross profit margin from 33.1% to 27.9% and the decrease in gross profit accompanying the decline in revenue and other factors resulted in an operating loss of ¥68 million, compared with operating profit of ¥132 million in the same period of the previous year, and a segment loss (ordinary loss) of ¥62 million, compared with ordinary profit of ¥137 million in the same period of the previous year.」

「In Southeast Asia, in addition to the decline in appetite for capital investment, mainly in the automotive sectors of Thailand and Indonesia, which had continued since the second half of the previous fiscal year, restrictions on economic activity due to the spread of COVID-19 and other factors caused revenue to fall ¥378 million year on year, or 50.7%, to ¥367 million. In terms of earnings, the decline in the gross profit margin from 33.1% to 29.4% and the decrease in gross profit accompanying the decline in revenue and other factors resulted in an operating loss of ¥22 million, compared with operating profit of ¥89 million in the same period of the previous year, and a segment loss (ordinary loss) of ¥22 million, compared with ordinary profit of ¥91 million in the same period of the previous year.」

「In Southeast Asia, the Philippines and Vietnam remained firm, but demand in Thailand and Indonesia, the core ASEAN markets, showed signs of stagnation. As a result, revenue fell ¥76 million year on year, or 3.1%, to ¥2,409 million. In terms of earnings, the gross profit margin improved from 32.2% to 33.4% due in part to efforts to reduce costs, mainly material costs, and to cut various expenses. Operating profit therefore increased ¥82 million, or 56.1%, year on year to ¥229 million.」

「In Southeast Asia, the Philippines and Vietnam remained firm, but demand in Thailand and Indonesia, the core ASEAN markets, showed signs of stagnation. As a result, revenue fell ¥89 million year on year, or 4.6%, to ¥1,855 million. In terms of earnings, the gross profit margin improved from 31.9% to 33.0% due to the effect of cost reductions, mainly in material costs, while reductions in various expenses and other factors resulted in operating profit of ¥153 million, up ¥20 million, or 15.3%, and segment profit (ordinary profit) of ¥158 million, up ¥10 million, or 7.3%.」

「In Southeast Asia, in addition to regions that remained strong, including the Philippines and Vietnam, demand in Thailand and Indonesia, the core ASEAN markets, remained firm. Revenue rose ¥103 million year on year, or 8.5%, to ¥1,325 million. In terms of earnings, an improved gross profit margin, from 31.9% to 33.1%, and higher gross profit accompanying the increase in revenue and other factors resulted in operating profit of ¥132 million, up ¥49 million, or 59.4%, and segment profit (ordinary profit) of ¥137 million, up ¥46 million, or 50.6%.」

「In Southeast Asia, in addition to regions that remained strong, including the Philippines and Vietnam, demand in Thailand and Indonesia, the core ASEAN markets, was recovering. Revenue rose ¥90 million year on year, or 13.8%, to ¥746 million, while higher gross profit accompanying the increase in revenue and other factors resulted in operating profit of ¥89 million, up ¥19 million, or 28.4%, and segment profit (ordinary profit) of ¥91 million, up ¥20 million, or 29.6%.」

「In Southeast Asia, in addition to regions that remained strong, including the Philippines and Vietnam, demand in Thailand and Indonesia, the core markets of the ASEAN automotive industry, was gradually recovering. As a result, revenue rose ¥441 million year on year, or 21.6%, to ¥2,486 million. In terms of earnings, higher gross profit accompanying the increase in revenue and an improved gross profit margin, from 27.4% to 32.2%, due in part to efforts to reduce costs, mainly material costs, resulted in operating profit of ¥146 million, an increase of ¥201 million year on year, compared with an operating loss of ¥54 million in the same period of the previous year.」

「The main items included ¥125 million for expanding production equipment at PT. Kawata Indonesia (Southeast Asia), ¥42 million for renovating and renewing factory equipment and for production and research and development equipment at the Company (Japan), and ¥27 million for production equipment at Kawada Machinery Manufacturing (Shanghai) Co., Ltd. (East Asia).」

「The main items included ¥169 million in costs related to the construction of a new plant at Kawada Machinery Manufacturing (Shanghai) Co., Ltd. (East Asia), ¥114 million for expanding production equipment at PT. Kawata Indonesia (Southeast Asia), and ¥44 million for production and research and development equipment at the Company (Japan).」

「Expanding production in Southeast Asia and improving QCD」