Concerns including trade friction issues

「当第１四半期連結累計期間における世界経済は、引き続き中国経済の停滞や中東情勢の緊張継続等により不透明な状況が継続しました。また、エネルギー価格の高止まりに加え、さらに円安が進む中、特に材料全般の価格上昇や一部部材の入手難等から、当社の事業環境は前期に引き続き厳しい状況で推移しました。」

「Specific events have become evident, including the prolonged Russian invasion of Ukraine, conflict and deteriorating security in the Middle East, friction centered on export controls and tariff measures in the semiconductor sector amid tensions in US-China relations, and rising military tensions around the Taiwan Strait. In addition, the closure of straits resulting from the confrontation between Iran and the United States has also been confirmed.」

「The operating environment during the interim consolidated accounting period remained difficult to forecast, partly due to the stagnation of the Chinese economy and the impact of US tariff measures.」

「Directly, higher costs resulting from surging raw material prices and energy costs, as well as difficulties procuring components and materials, may adversely affect the performance and financial position of our Group. Indirectly, fluctuations in customer demand resulting from reciprocal tariffs and amendments to laws, systems, and regulations in individual countries may affect our Group's production and sales activities.」

「If heightened geopolitical risks, including the situation in Russia and Ukraine and increasingly complex US-China relations, changes in laws and regulations, energy shortages, and surging raw material and logistics costs, restrict production, logistics, or sales activities and disrupt the supply of products to customers, they may adversely affect the performance of our Group.」

「Unforeseeable country risks, including major changes in the laws and tax systems of individual countries and regions, wars, and trade friction」

「The operating environment during the cumulative first quarter under review remained challenging as COVID-19 continued to spread worldwide, with no clear outlook for containment and growing concerns that the economic downturn and deteriorating market conditions would be prolonged.」

「Global automobile sales declined amid the expanding impact of prolonged US-China trade friction, while the industrial equipment market stagnated because of restrained capital investment, resulting in generally challenging conditions.」

「Although some markets, including air conditioners, remained firm due to tighter environmental regulations in China, overall conditions were challenging because of the decline in global automobile sales and stagnation in the industrial equipment market resulting from restrained capital investment, including the expanding impact of prolonged US-China trade friction.」

「As market conditions in the global automotive market deteriorated, inventory adjustments progressed gradually throughout the supply chain. Sales fell sharply not only for products for automobiles, a core product line of the Company and its U.S. subsidiary Allegro MicroSystems, Inc., but also for products for industrial equipment.」

「The slowdown in China's economic growth and the effects of US-China trade friction led to deteriorating business sentiment worldwide, including in Europe and the United States. Domestic and overseas market conditions weakened further, and demand adjustments and restraint on investment became widespread.」

「Sales of products for automobiles and industrial equipment were affected by US-China trade friction and lower demand accompanying China's economic slowdown. Consequently, consolidated sales for this business were ¥147.211 billion, a marginal increase of ¥3.374 billion, or 2.3%, from the previous consolidated fiscal year,」

「Concerns emerged over slower economic growth in the United States and China due to the prolonged trade dispute, and the global economic growth rate slowed.」

「During the cumulative second quarter of the current consolidated fiscal year, the economic environment remained subject to uncertainty over trade issues and interest-rate trends. Nevertheless, economic expansion continued in North America and Europe, supported by increases in personal consumption and capital investment, while China remained firm despite concerns over an economic slowdown.」

「During the cumulative first quarter of the current consolidated fiscal year, the economic environment included concerns such as trade friction. Nevertheless, economic expansion continued in North America and Europe, supported by increases in personal consumption and capital investment, while signs of an economic recovery driven by policy effects continued in China.」