Results for 2Q 2020 (from January 1 to June 30, 2020)
The Japanese economy in the first six months was in a severe situation, seriously affected by the spread of the COVID-19 coronavirus. In particular, personal consumption fell sharply associated with the Japanese government’s request to stay at home and suspend business operations. After lifting the declaration of a state of emergency, economic activities resumed. Despite that, we see no end to the COVID-19 coronavirus and there is concern over the prolonged negative impact on the domestic and global economies.
In this economic environment, the Group continued to focus on IT Solutions. However, the markets for business equipment and consumer equipment, which were contracting, declined sharply due to COVID-19. Sales activities were also severely restricted due to the fact that employees were put on leave on a rotating basis from April through May. As a result, net sales decreased to 262.593 billion yen (down 13.3% year on year).
On the profit side, despite company-wide efforts to reduce selling, general and administrative expenses, operating income came to 13.140 billion yen (down 2.1% year on year) due to a decrease in gross profit resulting from declining net sales. Meanwhile, ordinary income was 16.653 billion yen (up 16.1% year on year) thanks to the payment of an employment adjustment subsidy, and profit attributable to owners of parent was 9.963 billion yen (up 5.6% year on year).
Full-year forecasts for the fiscal year ending December 31, 2020
With regard to the earnings forecast for the fiscal year ending December 31, 2020, because it is difficult to make a reasonable calculation due to COVID-19, we withdrew the financial forecast on April 22, and a new forecast has yet to be determined. However, the Japanese Government’s declaration of a state of emergency was lifted and economic activities are beginning to resume. Therefore, we have calculated the earnings forecast based on the currently available estimates and we will disclose the revised figures.
The earnings forecasts reflect the Company’s assumption based on currently available information and are subject to underlying risks and uncertainties. Please note that they may differ from the earnings forecasts due to changes in many different factors going forward. If the earnings forecasts require any revisions, it will be announced immediately.
|Net Income||532.0 billion yen (down 14.4% year on year)|
|Operating Income||21.0 billion yen (down 35.3% year on year)|
|Ordinary Income||24.7 billion yen (down 27.2% year on year)|
|Profit attributable to owners of parent||14.6 billion yen (down 34.4% year on year)|
About the earnings forecasts and future prospects on this website
The earnings forecasts and future prospects on this website reflect the Company’s assumptions based on information available at the time of announcement. Please note that they may differ significantly from the actual results due to changes in many different factors.