Impact of the Kumamoto Earthquake on Orders and Business Performance

「During the first-quarter consolidated cumulative period, Japan's economy remained on a gradual recovery track, supported domestically by improving employment conditions and firm corporate earnings.」

「In the logistics services business, although orders recovered in the domestic storage equipment products business, net sales were ¥7,622 million, down 1.2% year on year, due mainly to a decline in order volumes from major customers in the packaging business.」

「Against this backdrop, although the expansion of logistics operations at North American subsidiary KIMURA, INC. was a factor supporting revenue growth, net sales were affected by lower orders in the domestic storage equipment products business, a decline in automobile sales due to sluggish personal consumption and the impact of manufacturers' fuel-economy reporting scandals, the Kumamoto earthquake and other factors, as well as the negative impact of the stronger yen on translation into yen. Net sales were ¥34,730 million, down 3.1% year on year.」

「Against this backdrop, although the expansion of logistics operations at North American subsidiary KIMURA, INC. was a factor supporting revenue growth, net sales were affected by lower orders in the domestic storage equipment products business, a decline in automobile sales due to sluggish personal consumption and the impact of manufacturers' fuel-economy reporting scandals, the Kumamoto earthquake and other factors, as well as the negative impact of the stronger yen on translation into yen. Net sales were ¥23,104 million, down 0.9% year on year.」

「Although revenue was adversely affected by lower orders in the domestic storage equipment products business and the Kumamoto earthquake, revenue increased through higher revenue from logistics operations at North American subsidiary KIMURA, INC. and higher revenue from the automotive services business, among other factors. Net sales were ¥11,555 million, up 0.7% year on year.」