Consolidated Financial Results for the first quarter
of Fiscal Year ending December 31, 2023
May 12, 2023
Listed Company Name ……….. | UNION TOOL CO. |
Shares Listed ………………….. | Tokyo Stock Exchange Code No. 6278 |
Head Office …………………… | 6-17-1,Minami-Ohi,Shinagawa-ku, Tokyo 140-0013 |
URL …………………………... | https:// www.uniontool.co.jp |
CEO …………………………... | Takao Katayama |
Contact ………………………... | Norimasa Kurata, Executive Officer Tel 03-5493-1017 |
Date of the Q1 financial reports to be presented to Ministry of Finance Japan: May 12, 2023
1. Financial results for the first quarter of FY2023 (January 1, 2023- March 31, 2023)
( 1 ) Consolidated performance | Amounts less than one million yen have been omitted. | ||
Net sales YonY | Operating profit YonY | Ordinary profit YonY |
1st quarter of FY 2023 | ¥m | 5,792 | -22.5 | % | ¥m | 953 | -39.1 | % | ¥m | 1,009 | -38.2 | % | |||||
1st quarter of FY 2022 | 7,475 | 17.7 | % | 1,566 | 43.6 | % | 1,632 | 37.8 | % | ||||||||
Profit attributable to | Earnings per share | Earnings per share | |||||||||||||||
owners of parent | YonY | after dilution | |||||||||||||||
1st quarter of FY 2023 | ¥m | 763 | -37.6 | % | ¥ | 44.21 | - | ||||||||||
1st quarter of FY 2022 | 1,223 | 39.3 | % | 70.81 | - | ||||||||||||
( 2 ) Consolidated financial position | Amounts less than one million yen have been omitted. | ||||||||||||||||
Total assets | Net assets | Net assets to total assets | |||||||||||||||
1st quarter of FY 2023 | ¥m | 68,352 | ¥m | 64,291 | 94.1 | % | |||||||||||
FY 12/2022 | 69,135 | 63,625 | 92.0 | ||||||||||||||
2. Cash dividends | |||||||||||||||||
Per share | |||||||||||||||||
Interim cash dividends | Year-end cash dividends | Annual cash dividends | |||||||||||||||
FY 12/2022 actual | ¥ 42.00 | ¥ 42.00 | ¥ 84.00 | ||||||||||||||
FY 12/2023 | actual | - | - | - | |||||||||||||
forecast | ¥ 42.00 | ¥ 42.00 | ¥ 84.00 | ||||||||||||||
Note: Revision of forecast for dividends since the previous announcement … No
3. Forecasts for the year ending December 31, 2023 (January 1, 2023- December 31, 2023)
Net sales | Operating profit | Ordinary profit | Profit attributable to | EPS | |
owners of parent | |||||
Half year | ¥m 11,300 | ¥m 1,600 | ¥m 1,700 | ¥m 1,300 | ¥ 75.25 |
YonY change | -26.3% | -54.6% | -53.5% | -50.1% | - |
Full year | ¥m 24,300 | ¥m 3,500 | ¥m 3,600 | ¥m 2,600 | ¥ 150.50 |
YonY change | -16.5% | -43.5% | -46.6% | -48.0% | - |
Note: Revision of forecasted consolidated financial results since the previous announcement … Yes
For details, please refer to "Notice of Revision to Consolidated Financial Forecast" disclosed today.
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4. Others
( 1 ) Significant change in subsidiaries during this quarter (change in designated subsidiaries resulting in adjustment to the scope of consolidation) …… None
( 2 ) Application of simplified accounting methods and special accounting methods in the preparation of quarterly consolidated financial statements …… None
( 3 ) Changes in the principles, procedures and presentation method for accounting treatment in the preparation of quarterly consolidated financial statements
- Changes associated with revisions in accounting standards ……Yes
- Changes other than above …… None
- Changes in accounting estimates …… None
- Retrospective restatement …… None
( 4 ) Shares outstanding | ||
1. | Number of shares outstanding ( including treasury stocks ): | |
3/31/2023 … 19,780,000 | 12/31/2022 … 19,780,000 | |
2. | Number of treasury stocks: | |
3/31/2023 …2,504,659 | 12/31/2022 … 2,504,617 | |
3. | Number of average shares outstanding (cumulative, consolidated at the end of the first quarter): | |
3/31/2023 …17,275,362 | 3/31/2022 … 17,275,523 |
Request for appropriate use of the business outlook and other special remarks
The forecasts are based on information available to the management at the time of this announcement. Due to variable factors, actual results may be different from the forecast figures.
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Qualitative Information concerning the Quarterly Results
(1) Qualitative information regarding consolidated business results
During the first quarter of this fiscal year, although economic activity slowly normalized, we realized that prices increased due to global monetary tightening and consumer confidence slumped amid an economic downturn. Due to the impact of financial capital market fluctuations etc., the situation in domestic and foreign economies is still uncertain. In our electronic industry, demand was significantly dropped, especially for semiconductor-related products. Affected by that, our net sales for the first quarter of FY12/2023 significantly decreased to ¥5,792 million (YoY -22.5%). Operating profit, ordinary profit, and profit attributable to owners of parent ware ¥953 million (YoY-39.1%), ¥1,009 million (YoY -38.2%), ¥763 million (YoY -37.6%), respectively, because of production adjustment and lower operating rate due to decreased demand.
In Japan, net sales (including intersegment transaction amount) were ¥4,074 million (YoY -20.3%). Operating profit was ¥331 million (YoY -71.0%).
In Asia, excluding Japan, the operating rate at our local factories decreased due to the slowdown of China's economy. Net sales in this segment were ¥2,549 million (YoY -30.9%), and the operating loss ware ¥5 million (operating profit in the first quarter of FY2022 was ¥388 million).
In North America, net sales in this segment were ¥425 million (YoY +10.6%), and operating profit amounted to ¥52 million (YoY +82.9%). In Europe, net sales and operating profit were ¥524 million (YoY -13.0%) and ¥31 million (YoY -17.5%), respectively.
- Qualitative information regarding forecasts for the year ending December 31, 2023
We revised the FY12/2023 forecast, announced on February 14, 2023.
The electronic industry experienced rapid inventory adjustments and controlling capital investment. We were affected by a drop in demand, especially for semiconductor-related products. Our inventory adjustments and declining operating rates continue due to the influence of China's economic slowdown, declining demand for PCs and smartphones in reaction to COVID-19 special demand, and a decrease in data center-related demand due to reduced capital investment. We review that the speed of demand recovery after the third quarter of FY12/2023 will be slower than expected. Therefore, we revised the full-year sales forecast downward and reduced profit items accordingly. For details, please refer to "Notice of Revision to Consolidated Financial Forecast" disclosed today.
We will prepare for the recovery in demand and focus on further improving the know-how cultivated in the industrial cutting tool field and introducing next-generation products.
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Financial Statements
Consolidated balance sheet
millions of yen | |||
FY12/2022 | FY12/2023 Q1 | ||
as of December 31, 2022 | as of March 31, 2023 | ||
Assets | |||
Current assets | |||
Cash and deposits | 20,971 | 20,580 | |
Notes and accounts receivable - trade | 8,626 | 7,511 | |
Securities | - | 320 | |
Merchandise and finished goods | 5,908 | 6,481 | |
Work in process | 1,351 | 1,234 | |
Raw materials and supplies | 3,501 | 3,621 | |
Other | 379 | 267 | |
Allowance for doubtful accounts | -23 | -17 | |
Total current assets | 40,715 | 40,000 | |
Non-current assets | |||
Property, plant and equipment | |||
Buildings and structures, net | 6,334 | 6,288 | |
Machinery, equipment and vehicles, net | 8,774 | 8,620 | |
Tools, furniture and fixtures, net | 310 | 314 | |
Land | 5,942 | 5,950 | |
Construction in progress | 919 | 1,213 | |
Other, net | 200 | 173 | |
Total property, plant and equipment | 22,482 | 22,561 | |
Intangible assets | 60 | 76 | |
Investments and other assets | |||
Investment securities | 5,235 | 5,287 | |
Other | 679 | 463 | |
Allowance for doubtful accounts | -37 | -36 | |
Total investments and other assets | 5,877 | 5,714 | |
Total non-current assets | 28,420 | 28,352 | |
Total assets | 69,135 | 68,352 | |
Liabilities | |||
Current liabilities | |||
Notes and accounts payable - trade | 934 | 746 | |
Accounts payable - other | 339 | 128 | |
Accrued expenses | 957 | 807 | |
Income taxes payable | 1,473 | 323 | |
Contract liabilities | 37 | 47 | |
Provision for bonuses | 784 | 1,156 | |
Provision for bonuses for directors (and other officers) | - | 15 | |
Other | 396 | 279 | |
Total current liabilities | 4,923 | 3,504 | |
Non-current liabilities | |||
Long-term accounts payable - other | 219 | 219 | |
Retirement benefit liability | 268 | 261 | |
Other | 98 | 74 | |
Total non-current liabilities | 586 | 556 | |
Total liabilities | 5,509 | 4,061 | |
Net assets | |||
Shareholders' equity | |||
Share capital | 2,998 | 2,998 | |
Capital surplus | 3,020 | 3,020 | |
Retained earnings | 60,145 | 60,184 | |
Treasury shares | -6,735 | -6,735 | |
Total shareholders' equity | 59,429 | 59,467 | |
Accumulated other comprehensive income | |||
Valuation difference on available-for-sale securities | 744 | 1,037 | |
Foreign currency translation adjustment | 3,302 | 3,649 | |
Remeasurements of defined benefit plans | 149 | 136 | |
Total accumulated other comprehensive income | 4,196 | 4,823 | |
Total net assets | 63,625 | 64,291 | |
Total liabilities and net assets | 69,135 | 68,352 |
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Financial Statements
Consolidated statement of income
millions of yen | ||
FY12/2022 Q1 | FY12/2023 Q1 | |
January 1, 2022 - March 31, 2022 | January 1, 2023 - March 31, 2023 | |
Net sales | 7,475 | 5,792 |
Cost of sales | 4,647 | 3,571 |
Gross profit | 2,827 | 2,220 |
Selling, general and administrative expenses | 1,261 | 1,267 |
Operating profit | 1,566 | 953 |
Non-operating income | ||
Interest income | 7 | 13 |
Dividend income | 0 | 0 |
Foreign exchange gains | 51 | - |
Rental income from non-current assets | 11 | 11 |
Subsidy income | 19 | 49 |
Subsidy income | 22 | 26 |
Other | 11 | 14 |
Total non-operating income | 124 | 116 |
Non-operating expenses | ||
Interest expenses | 3 | 2 |
Depreciation | 10 | 10 |
Foreign exchange losses | - | 9 |
Commission expenses | 29 | 26 |
Taxes and dues | 3 | 3 |
Other | 11 | 9 |
Total non-operating expenses | 58 | 61 |
Ordinary profit | 1,632 | 1,009 |
Extraordinary income | ||
Gain on sale of investment securities | - | 38 |
Total extraordinary income | - | 38 |
Profit before income taxes | 1,632 | 1,047 |
Income taxes - current | 546 | 210 |
Income taxes - deferred | -137 | 73 |
Total income taxes | 408 | 283 |
Profit | 1,223 | 763 |
Profit attributable to non-controlling interests | - | - |
Profit attributable to owners of parent | 1,223 | 763 |
Consolidated statement of comprehensive income
millions of yen | ||
FY12/2022 Q1 | FY12/2023 Q1 | |
January 1, 2022 - March 31, 2022 | January 1, 2023 - March 31, 2023 | |
Profit | 1,223 | 763 |
Other comprehensive income | ||
Valuation difference on available-for-sale securities | 5 | 292 |
Foreign currency translation adjustment | 1,003 | 347 |
Remeasurements of defined benefit plans, net of tax | -1 | -12 |
Total other comprehensive income | 1,006 | 627 |
Comprehensive income | 2,230 | 1,391 |
Comprehensive income attributable to | ||
Comprehensive income attributable to owners of parent | 2,230 | 1,391 |
Comprehensive income attributable to non-controlling interests | - | - |
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Union Tool Co. published this content on 12 May 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 12 May 2023 06:12:12 UTC.