Progress and outlook of Zuken’s Medium-Term Business Plan
On December 8, 2016, Zuken held an information meeting for a progress report concerning the medium-term business plan that covers the three-year period ending in March 2019.
The plan has the following key points and goals.
1. First half progress toward the medium-term sales and earnings targets
In the first half of the first year of the medium-term business plan, net sales were 9,928 million yen, 2% lower than one year earlier, and operating income increased 151 million yen from the previous first half to 309 million yen. Sales decreased because the yen appreciated considerably from one year earlier in relation to the U.S. dollar and the euro, resulting in lower yen translations of overseas sales. However, operating income increased because the yen’s strength lowered overseas expenses.
Overseas sales were higher than one year earlier in all regions on a local-currency basis.
In North America, initiatives during the previous medium-term business plan as well as measures to strengthen sales operations are beginning to produce benefits. In addition, market conditions in this region are favorable. As a result, sales are expected to remain strong in the fiscal year’s second half. In Europe and Asia, the operating environment will probably remain unclear. In Japan, although a broad-based recovery in Zuken’s markets has not yet started, sales activities will continue that focus on industries where companies are making substantial investments, primarily in the automotive and IoT sectors.
Based on this outlook, there are no changes to the plan for the current fiscal year and the medium-term sales and earnings targets.