Overview of the latest financial information
Overview of business results of the Second quarter of the Fiscal Year ending December 31, 2020
In regard to the global economy in this second quarter consolidated term, the economy in the United States has deteriorated rapidly due to the effects of the novel coronavirus. The economy in China however has seen a turn to positive growth owing to a reduced effect of the virus, but momentum has been limited. In Europe, the effects of the virus are also causing concern regarding economic downturn risks.
Even in Japan, the situation regarding employment and corporate profits, etc. had been on a gradual recovery trend in the first half of the fiscal year, however the economy has deteriorated rapidly in the second half and remained constrained, reflecting the global spread of the virus.
Amid this economic environment, the Group has generally remained firm on the whole. Although an impact was felt in the second quarter mainly in the automotive parts business due to declined demand and reduced operation hours in production bases, etc., we were supported by our strong laptop computer connector business along with other factors.
Results from the Group's Electrical and Electronic Components Business exceeded that of the same period for the previous year. This was owing to business growth in sophisticated connectors with high-frequency and high-speed transmission characteristics that add high value. Orders for Micro Coaxial connectors have also continued to remain high in the second quarter as demand for laptop computers remained firm due to the expansion of telecommuting and other factors. Business for Micro Radio Frequency (RF) Coaxial connectors has been sluggish due to the slowdown in the smartphone market, but has been relatively strong for laptop computers and routers. Board-to-Board (FPC) connectors has maintained its strong success with connectors that have excellent shielding characteristics for communication modules in 5G-capable smartphones. Although business for HDD-related components has been sluggish due to supply chain turmoil, etc. caused by the novel coronavirus, demand for servers has remained relatively firm.
Automotive Components Business has been affected by the rapid decline in automobile sales, and demand for automotive parts, such as sensors and connectors, has been sluggish. Although the effects felt by the spread of the novel coronavirus in the first quarter remained limited, orders in the second quarter fell significantly due to significant inventory adjustments made by automobile parts manufacturers and other companies.
In Equipment Business, demand for semiconductor resin sealing devices and molds, etc. has slowed down due to the spread of the novel coronavirus. This has been in addition to the recession of the semiconductor economy since last year, and the cautious attitude toward investment by semiconductor manufacturers.
As a result, sales of the second quarter of the current consolidated fiscal year decreased 4.3 % to 24,334 million yen, compared with the prior year, also our operating income 640 million yen (We had operating loss of 276 million yen prior year), ordinary income 794 million yen (We had ordinary loss of 550 million yen prior year), and net income attributable to owners of parent was 301 million yen (We had net loss attributable to owners of parent 643 million yen prior year.).