Demand fluctuations driven by capital investment, housing starts, overseas economic conditions, and other factors

「一方で営業利益は、電子・デバイスセグメントにおける主要顧客の生産調整や競合激化の影響、建材セグメントにおける工事行程の後送り等の影響及び事業譲受関連費用の計上により、462百万円（同48.4％減）となりました。」

「Operating profit was ¥462 million, down 48.4% year on year, due to the effects of production adjustments by major customers and intensifying competition in the Electronics and Devices segment, delays in construction schedules and other factors in the Building Materials segment, and the recognition of expenses related to the business acquisition.」

「日本国内の民生電子機器市場及び白物家電市場は、中国企業が急速にシェアを拡大しており、当社の主要顧客層である大手日系電機メーカーは、一部で事業売却を含む厳しい対応を余儀なくされる状況となっております。」

「Looking ahead, gradual recovery is expected to be supported by improvements in employment and income conditions and the effects of various policies. However, the risk of an economic downturn due to the impact of U.S. trade policy is increasing. In addition, continued price increases pose a risk of weighing on Japan's economy through their impact on personal consumption, including a deterioration in consumer sentiment.」

「In Japan's domestic consumer electronic equipment and white goods markets, Chinese companies have rapidly expanded their market share, while major Japanese electronics manufacturers, which comprise our customer base, are generally facing severe difficulties.」

「The risk of an economic downturn due to the impact of U.S. trade policy is increasing. In addition, continued price increases pose a risk of weighing on Japan's economy through their impact on personal consumption, including a deterioration in consumer sentiment.」

「Revenue and profit declined due to the global slowdown in the electronic equipment-related market from the second half of 2022, compounded by the impact of the semiconductor supply problem that had continued for approximately 2 years being rapidly resolved, which led to an accumulation of component inventories across the market.」

「However, as global monetary tightening and other factors continue, a downturn in overseas economies poses a risk of weighing on Japan's economy. Close attention must also be paid to the impact of rising prices and volatility in financial and capital markets, among other factors.」

「The resin materials-related sector remained sluggish and revenue declined because the recovery of the automotive market was delayed by semiconductor shortages. The textile materials-related sector remained sluggish due to market stagnation caused by price increases and lower demand.」

「Revenue in the construction materials-related sector declined because there was a lull between orders for large projects, including ground improvement works. The textile-related sector remained sluggish due to market stagnation caused by price increases and lower demand. In the electronic equipment-related sector, both the consumer electronic equipment market and the white goods market, its main markets, slowed year on year, but the sector achieved an increase in revenue and profit by expanding new orders.」

「During the cumulative second quarter of the current consolidated fiscal year, there were no new business or other risks, nor any material changes to the business and other risks described in the annual securities report for the previous fiscal year.」

「Looking ahead, a continued recovery is expected as measures to prevent the spread of infection are implemented and vaccinations are promoted, supported by the effects of various policies and improvements in overseas economies. However, the impact of volatility in financial and capital markets must be closely monitored.」

「Under these conditions, our Group worked to secure revenue and profit in each business area, but revenue, operating profit, ordinary profit, and net income attributable to owners of the parent declined. As a result, revenue was ¥80,625 million, down 9.2% from the previous consolidated fiscal year; operating profit was ¥1,395 million, down 18.6%; ordinary profit was ¥1,513 million, down 15.2%; and net income attributable to owners of the parent was ¥1,000 million, down 19.2%.」

「Looking ahead, a continued recovery is expected as measures to prevent the spread of infection are implemented, supported by the effects of various policies and improvements in overseas economies. However, sufficient attention must be paid to the growing downside risk from the spread of infection in Japan and overseas, and the impact of volatility in financial and capital markets must be closely monitored.」

「Among the markets related to our business, the construction-related market is considered likely to remain weak, although the impact of the infectious disease on the market as a whole has been relatively limited. The solar energy-related market has remained sluggish as feed-in tariff reductions have progressed, compounded by the impact of the infectious disease. The textile-related, automotive-related and resin-related markets have also remained difficult due to the infectious disease, while market conditions in the electronic equipment-related market have likewise remained difficult as the infectious disease has spread worldwide.」

「Looking ahead, the impact of the infectious disease is expected to keep conditions extremely difficult for an extended period. Sufficient attention must be paid to the risk that the infectious disease may further depress the economies of Japan and overseas, and the impact of volatility in financial and capital markets must be closely monitored.」

「In addition, COVID-19 is spreading worldwide and may have a significant negative impact, including deteriorating market conditions, across all markets related to our Group's business.」

「Meanwhile, in addition to the impact of developments in trade issues, the outlook for the Chinese economy, the UK's withdrawal from the EU, developments in overseas economies including the situation in the Middle East, and volatility in financial and capital markets, attention must also be paid to consumer sentiment following the consumption tax rate increase.」

「Meanwhile, while paying closer attention to the impact of developments in trade issues on the global economy, attention must also be paid to the outlook for the Chinese economy, developments in overseas economies, uncertainty over policies, the impact of volatility in financial and capital markets, and consumer sentiment following the consumption tax rate increase.」

「Meanwhile, while paying closer attention to the impact of developments in trade issues on the global economy, attention must also be paid to the outlook for the Chinese economy, developments in overseas economies, uncertainty over policies, and the impact of volatility in financial and capital markets.」

「However, attention must be paid to the impact and uncertainty that trade issues between the United States and China, among others, may have on the global economy, as well as the impact of volatility in financial and capital markets.」

「However, attention must be paid to the impact of trade issues on the global economy, uncertainty over overseas economies, and the impact of volatility in financial and capital markets.」

「Meanwhile, in addition to the impact and uncertainty that trade issues in countries including the United States, Europe and China may have on the global economy and the impact of volatility in financial and capital markets, attention must also be paid to the economic impact of a series of natural disasters in Japan.」

「Meanwhile, attention must be paid to the impact and uncertainty that trade issues in countries including the United States, Europe and China may have on the global economy, as well as the impact of volatility in financial and capital markets.」

「Attention must be paid to the outlook for the economies of China and other emerging Asian countries, the impact of policy uncertainty, developments in trade issues, and the impact of volatility in financial and capital markets.」

「Among the markets related to our business, the construction-related, electronic components-related and automotive-related markets remained firm. Meanwhile, although the prolonged review of business plan certifications by the authorities following the implementation of the amended FIT Act in April 2017 was gradually being resolved, the solar energy-related market remained sluggish throughout the cumulative third quarter of the fiscal year. The apparel market also remained sluggish.」

「Among the markets related to our business, the construction-related, electronic equipment and automotive-related markets remained firm. Meanwhile, although the prolonged review of business plan certifications by the authorities following the implementation of the amended FIT Act in April 2017 was gradually being resolved, the solar energy-related market remained sluggish throughout the cumulative second quarter of the fiscal year. The apparel market also remained sluggish.」

「Meanwhile, attention must be paid to the outlook for the economies of China and other emerging Asian countries, the impact of policy uncertainty, rising geopolitical risks, and the impact of volatility in financial and capital markets.」

「Under these conditions, our Group recorded lower revenue in the solar energy-related, construction materials-related, textile-related and commercial facilities-related sectors.」

「Under these conditions, our Group recorded lower revenue in the solar energy-related, construction materials-related, textile-related and commercial facilities-related sectors.」

「Meanwhile, financial instability overseas has been growing amid uncertain conditions, including the UK's withdrawal from the EU and an increase in terrorism.」

「The business is significantly affected by changes in private-sector capital investment, public works and housing starts. In industrial materials, in addition to weak domestic private-sector capital investment, production cuts by customers due to deteriorating economic conditions in overseas countries, particularly in Asia, may adversely affect the performance and financial condition of our Group.」