Lower Revenue and Profit Due to Market Downturn in the EMS Business

「In the manufacturing and sales of electronic components, operating rates declined temporarily as factory functions were reorganized, putting temporary pressure on profitability. However, demand increased at some customers, mainly for industrial equipment and infrastructure-related products, and orders for projects from the next fiscal year onward also increased, indicating prospects for a recovery. In the manufacturing and sales of lighting equipment, the industry-wide shift to LED lighting accelerated as production of fluorescent lamps ended. Residential LED lighting equipment remained firm, while base lighting and straight-tube LED lighting performed well in non-residential LED lighting. Sales of special lighting, including aircraft landing guidance flash systems for airports, also increased substantially. As a result, revenue was ¥17,056 million, up 1.0% from the previous fiscal year, and segment profit was ¥394 million, up 0.1%.」

「In the manufacturing and sales of electronic components, profitability was temporarily pressured by lower operating rates associated with the reorganization of factory functions. ...As a result, revenue for the interim consolidated accounting period was ¥7,506 million, down 5.6% year on year, and the segment reported a loss of ¥189 million, compared with segment profit of ¥94 million in the same period of the previous year.」

「In the electronic components wholesale business, inventory levels became excessive after advance ordering due to component shortages since the COVID-19 pandemic subsided, and new orders declined as inventory adjustment periods coincided across many industries. ...As a result, revenue was ¥16,880 million, up 97.3% from the previous fiscal year, and segment profit was ¥393 million, down 5.8%.」

「In the electronic components wholesale business, advance ordering due to component shortages since the COVID-19 pandemic had subsided, and new orders declined as inventory adjustment periods coincided across many industries amid excess inventories. In the contract manufacturing business, demand remained sluggish due in part to inventory adjustments, but infrastructure-related products, particularly power-related products, benefited from energy-saving demand. In the lighting equipment manufacturing and sales business, sales of low-priced residential lighting products grew amid sluggish personal consumption due to rising prices. Non-residential lighting equipment remained firm, helped by the acquisition of new construction projects. In addition, the inclusion of ホタルクス in the scope of consolidation from 31 December 2023 resulted in a substantial increase in revenue for the interim consolidated accounting period compared with the same period of the previous year. As a result, revenue was ¥7,952 million, up 219.2% year on year, and segment profit was ¥94 million, down 7.2%.」

「As a result, revenue was ¥8,557 million, up 86.2% from the previous fiscal year, and segment profit was ¥418 million, up 149.8%.」

「In the electronic components wholesale business, sales declined due to inventory adjustments for components related to semiconductor manufacturing equipment, but the environmental and equipment-related businesses, which remained firm, led performance. In the contract manufacturing business, the order backlog has been steadily converted into sales as component procurement has gradually begun to improve. As a result, revenue was ¥3,746 million, up 8.1% year on year, and segment profit was ¥152 million, up 25.8%.」

「In particular, for unit products, the order backlog has been steadily converted into sales as the procurement of components has gradually begun to improve. As a result, revenue was ¥2,491 million, up 15.9% year on year, and segment profit was ¥101 million, up 66.1%.」

「In the contract manufacturing and electronic components wholesale businesses, orders for procurement support projects increased against a backdrop of shortages in the distribution of electronic components such as semiconductors. The business also benefited from stable demand for sales projects involving semiconductor manufacturing equipment, machine tools and textile machinery. As a result, revenue was ¥1,292 million, up 27.9% year on year, and segment profit was ¥60 million, up 201.0%.」

「In the contract manufacturing and electronic components wholesale businesses, orders for procurement support projects increased against a backdrop of shortages in the distribution of electronic components such as semiconductors. The business also benefited from steady demand for sales projects involving semiconductor manufacturing equipment, machine tools and textile machinery. As a result, revenue was ¥4,596 million, up 11.8% from the previous fiscal year, and segment profit was ¥167 million, up 41.5%.」

「In the contract manufacturing and electronic components wholesale businesses, electronic components such as semiconductors remained difficult to procure, but orders remained strong, supported by robust demand centered on semiconductor manufacturing equipment. As a result, revenue was ¥3,464 million, up 17.4% from the previous fiscal year, and segment profit was ¥121 million, up 36.3%.」

「In the contract manufacturing and electronic components wholesale businesses, electronic components such as semiconductors remained difficult to procure, but orders remained strong, supported by robust demand centered on semiconductor manufacturing equipment. As a result, revenue was ¥2,149 million, up 19.8% year on year, and segment profit was ¥61 million, up 71.8%.」

「In the contract manufacturing and electronic components wholesale businesses, electronic components such as semiconductors remained difficult to procure, but orders remained strong, supported by robust demand centered on semiconductor manufacturing equipment.」

「In the contract manufacturing and electronic components wholesale businesses, electronic components such as semiconductors remained difficult to procure, but orders remained strong, supported by robust demand centered on semiconductor manufacturing equipment. As a result, revenue was ¥1,010 million, up 16.0% year on year, and segment profit was ¥20 million, up 13.9%.」

「In the contract manufacturing and electronic components wholesale businesses, orders remained strong, supported by robust demand centered on machine tools and semiconductor manufacturing equipment. However, electronic components such as semiconductors remained difficult to procure, and order backlogs tended to increase as deliveries of units were delayed. We also adjusted prices for customers in response to higher raw material costs and worked to contain manufacturing costs. As a result, revenue was ¥4,111 million, up 32.1% from the previous fiscal year, and segment profit was ¥118 million, up 1,300.8%.」

「In the contract manufacturing and electronic component wholesale businesses, electronic components such as semiconductors remained difficult to procure, but orders remained strong, mainly for machine tools and semiconductor manufacturing equipment. Backlog also trended upward because some orders could not be supplied. The company also worked to contain manufacturing costs by adjusting prices for customers in response to higher raw material prices. As a result, net sales rose 25.3% year on year to ¥2,952 million, while segment profit increased 559.3% to ¥89 million.」

「In the contract manufacturing and electronic components wholesale businesses, orders were generally trending higher, led by machine tools. However, electronic components such as semiconductors remained difficult to procure, and the impact of inventory adjustments in some markets continued to be a concern. As a result, revenue was ¥1,795 million, up 11.9% year on year, and segment profit was ¥35 million, up 279.0%.」

「In the contract manufacturing and electronic components wholesale businesses, orders, led by machine tools and semiconductor manufacturing equipment, were trending toward recovery from the same period of the previous year. However, inventory adjustments continued in part of the logistics equipment market, and overall orders remained firm. As a result, revenue was ¥870 million, up 4.6% year on year, and segment profit was ¥17 million, up 1.0%.」

「In the contract manufacturing and electronic components wholesale businesses, production cuts continued due to the ongoing market downturn caused by the COVID-19 pandemic and other factors. Orders remained sluggish, particularly as inventory adjustments for equipment-related products, including logistics, medical, textile and machine tools, were prolonged. As a result, revenue was ¥3,110.931 million, down 14.1% from the previous fiscal year, and segment profit was ¥8.448 million, down 88.1%.」