Globalization through expanded North American sales and collaboration with overseas subsidiaries

「Efforts to expand sales of new products enabled us to exceed the previous year's results, including at local subsidiaries. Despite frequent geopolitical issues, we steadily expanded sales in Asia and Central and South America, supported by firm demand in the replacement-parts market and the weaker yen. As a result, sales were ¥27.979 billion, up 10.4% year on year.」

「Our order situation remains strong, supported by stronger customer relationships and the launch of transactions involving new products. As a result, sales were ¥13.424 billion, up 7.4% year on year.」

「Sales in the Overseas Sales Division remained strong from the beginning of the period, supported by robust orders, helped by the weaker yen, in overseas markets where demand for replacement parts continues to expand as the number of vehicles in operation increases. Although uncertainty increased further due to US tariff policy, interest-rate trends, and sharp foreign-exchange movements, there was no significant decline in orders in the fourth quarter. Backlogged orders accumulated because of suppliers' extended lead times also converted steadily into sales. Among overseas consolidated group companies, the US entity significantly increased sales and made a major contribution to consolidated results. As a result, sales were ¥25.342 billion, up 13.5% year on year.」

「In the Overseas Sales Division, backlogged orders accumulated for Central and South America and Asia converted steadily into sales, resulting in record-high standalone sales for the half-year. At overseas consolidated group companies, sales growth at the Singapore entity slowed as the economic tailwind from the weaker yen temporarily eased, although it remained strong, while the US entity recorded substantial growth. As a result, sales were ¥12.501 billion, up 12.3% year on year.」

「In the Overseas Sales Division, orders remained strong in nearly all regions, including the Middle East, due to the continued weakness of the yen. However, local sales slowed in some markets, including Asia and Central and South America, resulting in somewhat excessive inventories. Supplier price increases have stabilized, but lead times have not improved as much as expected, and back orders remain high. As a result, exports slowed somewhat in the fourth quarter, although performance was strong on a cumulative basis for the consolidated fiscal year.」

「In the Overseas Sales Division, sales of engine parts to the Middle East performed well, while the core Asian and Central and South American markets remained solid, continuing the trend from the previous quarter. Exports to these markets also increased. Overseas consolidated subsidiaries also performed well, particularly the Singapore subsidiary, which made a significant contribution to consolidated results. In Singapore, the subsidiary has established a one-stop supplier capability for aftermarket parts and maintained its competitive advantage in the country. As a result, sales were ¥17.205 billion, up 26.5% year on year.」

「In the Overseas Sales Division, the easing of import restrictions in the Middle East and Africa enabled shipments of backlogged orders, significantly increasing sales. Sales to the core Central and South American and Asian markets also progressed steadily, aided by the weaker yen, resulting in record-high quarterly standalone sales. Overseas consolidated subsidiaries also performed well, and a Thai subsidiary was newly consolidated from the current fiscal year. As a result, sales were ¥11.133 billion, up 30.7% year on year.」

「Standalone sales in the Overseas Sales Division reached a record high for the quarter, as sales to Asia reached a record high and all other regions also exceeded the previous year's levels.」

「Performance at overseas consolidated subsidiaries remained solid, reaching record-high sales. As a result, sales were ¥18.195 billion, up 23.2% year on year.」

「Orders grew mainly in Asia, supported by the weaker yen and advance demand ahead of supplier price increases. In several Middle Eastern and African countries that had restricted imports because of foreign-currency shortages, import approvals began to resume, allowing sales to be recognized in the cumulative nine-month period. Demand for replacement parts used to maintain vehicles currently in operation remained firm amid the global shortage of new and used vehicles, and sales at overseas consolidated subsidiaries also progressed steadily. Although suppliers' lead times remain extended and shipping schedules disrupted, performance remained solid, with sales of ¥13.598 billion, up 26.7% year on year. We will also actively pursue the development of proprietary-brand products and expansion of the overseas business, in addition to maintaining and expanding existing businesses.」

「The Overseas Sales Division maintained generally strong performance. Demand for replacement parts used to maintain vehicles in operation has increased because of the global shortage of new and used vehicles. Against this backdrop, standalone orders have continued at a pace exceeding the previous year's record-high level. Although suppliers' lead times remain extended and shipping schedules disrupted, strong orders have led to higher sales. By region, Asia and Central and South America performed well, while import restrictions in several Middle Eastern and African countries, imposed to address foreign-reserve shortages, had some effect on sales. The Singapore and US consolidated subsidiaries also performed strongly across the board. As a result, sales were ¥8.518 billion, up 21.9% year on year.」

「The Overseas Sales Division has maintained strong orders since the previous period, supported by advance demand ahead of price increases for key products by overseas business partners, responses to extended lead times, and yen depreciation to its weakest level in 20 years. In particular, orders in the ASEAN region, centered on engine and chassis parts, reached record-high levels and drove sales growth. The US and Singapore consolidated subsidiaries also continued to perform well. As a result, sales were ¥4.138 billion, up 30.6% year on year.」

「In the Overseas Sales Division, orders from around the world remained strong in the third quarter, with orders from Central and South America continuing at record-high levels. Although shipping schedules remain disrupted, orders are steadily converting into sales, and the Singapore and US consolidated subsidiaries also continued to perform well. As a result, sales were ¥10.732 billion, up 39.0% year on year.」

「The Overseas Sales Division saw continued market recovery, with orders trending upward, led by Central and South America. The Singapore and US consolidated subsidiaries also performed well. However, strong orders have extended lead times at key suppliers, and continuing disruptions to shipping schedules from the previous period have resulted in cases where shipments could not be made as planned. As a result, sales were ¥6.989 billion, up 43.2% year on year.」

「At a meeting of the Board of Directors held on 23 September 2020, we resolved to acquire all shares of Northeast Imported Parts & Accessories, Inc. through our consolidated subsidiary SPK USA HOLDINGS INC. and make it a subsidiary. We entered into a share transfer agreement on 15 October 2020 and acquired all shares on 16 October 2020.」

「In step with the global expansion of our business partners, we are increasing the proportion of parts procured overseas while promoting direct-trade deliveries to manufacturing sites, particularly in North America and China, and are making significant progress in expanding our scale toward a new era for SPK through global sales operations.」

「From the next period onward, we will promote further globalization by expanding sales in North America, where our presence has been limited, and collaborating with our overseas subsidiaries.」