Operations Review for the March 2018 Term
During the consolidated fiscal term under review (April 1, 2017 to March 31, 2018), despite some uncertainty factors, including geopolitical risks and growing political tensions in various countries, the overall world economy continued to recover and in general, the Japanese economy also remained strong. In the electronics market in which Tamura Group operates, sales of products related to industrial machinery, the demand for which grew as production equipment was reinforced and automated mainly in emerging economies, and products related to automobiles, the industry of which was expected to grow in the future as electrification and digitalization of automobiles progressed, continued to be strong. From the second half of the term, meanwhile, there had been causes for concern, such as sharp rises in the market prices of some components due to insufficient supply and the rising prices of copper and other materials, and in recent months, those included growth slowdown in the smartphone market and fluctuations in exchange rates.
Under those circumstances, in order to achieve substantial growth that gives top priority to improving profitability, as it aims in its eleventh mid-term management plan Biltrite Tamura GROWING, the Group worked on such initiatives as making all-out efforts to manage individual costs using IT systems effectively, establishing an even stronger global production, sales, and development system and making it even more efficient, and improving investment and development efficiency by determining the potential of products and markets.
As a result, during the current consolidated fiscal term, Tamura Group posted increases in both revenue and profits with net sales at \85,558 million (up 7.5% compared to the previous year), operating income at \5,407 million (up 5.7%), and ordinary income at \5,480 million (up 7.7%). Following the previous term, it chalked up the largest-ever operating income for two consecutive terms. Meanwhile, net income for the current term, which belongs to the shareholders of the parent company, decreased by 2.6% over a year earlier to \3,630 million. This was affected by the reporting of such amounts as those related to transactions among Tamura’s consolidated subsidiaries, which were expected to be additionally paid under the transfer pricing taxation system, as “corporate and other taxes for the past years.”
As of March 2018