To All Shareholders [ Decenber 2016 / June 2016 ]
To our shareholders and investors,
We sincerely thank for your continuing support and encouragement. As the second quarter of the 84th fiscal year for TPR has ended, I would like to address the summary of our financial report.
ALTHOUGH AFFECTED BY THE RAPIDLY RISING YEN, WE CONTINUED TO ACHIEVE FAVORABLE BUSINESS RESULT AT THE END OF THE FIRST HALF OF CURRENT FISCAL YEAR.
From the beginning of this year, most of the Japanese firms received negative impact of the stronger yen. Although the U.S. continued to maintain a certain steadiness, China and the emerging countries' economy have slowed down and there is still uncertainty remaining in the future.
In the automotive industry, which our company is mainly related to, the resilience of passenger car sales among domestic market is not as powerful as it has been. Even in overseas, due to the sluggish sales volume and the strong yen, the industry's revenue is experiencing a downward trend.
In this condition, our company increased the order volume from Asia and North America market and continued cost saving activities in overseas. However, in addition to the impact by profit deterioration of the export business due to the rapidly rising yen, the sales and profits of our overseas subsidiaries decreased after having those denominated to Yen. As a result, the sales revenue was 85 billion yen (decreased by 0.4%) which is nearly the same level compared to the previous year. Turning to profits, operating profit was 9.4 billion yen (decreased by 7.3%), profit before income tax was 10.4 billion yen (decreased by 11.7%) and net profit was 5.2 billion yen (decreased by 8.5%) each respectively. Considering the revenues and profits without the effect of the foreign currency exchange rate fluctuations, we have succeeded in achieving growth in both compared to the previous year. Steadily the revenue base of our group company is becoming stronger. Compared to the forecast of the first half of current fiscal year as announced before, both sales revenue and profit surpassed the expected value.
Regarding the amount of dividend, the interim dividend is 25yen per share as we had announced in the beginning of our term.
WE CONTINUE TO STRIVE TO ACHIEVE THE NEW MID-TERM MANAGEMENT PLAN.
This year, 2016 is the middle year of our "17 Mid-term Management Plan" which is to be completed in 2017. In the second half of this year, the economy of China and other new emerging countries are forecasted in a standstill and the new economy and management environment in the U.S. which will be led by the new president Mr. Trump are also the aspects we need to pay close attention to. Our company has been devoting in improving the productivity and expanding business related to engine in six regions all around the world to make our competitiveness even stronger. At the same time, we will maximize the diversified effect of FALTEC and other subsidiaries in the new business not related to engine and make this as one of our milestone to achieve our long-term goal "T&F GOAL 2220" which consists of sales revenue of 220 billion yen and net profit of 20 billion yen by 2020.
As we work toward achieving these goals, we kindly request the continued patronage from our shareholders and investors.
Kenichi Tomita, Chairman & CEO