SANWA HOLDINGS CORPORATION FY2016 First Quarter consolidated financial result highlights
pages
Ⅰ. Overview of Consolidated financial Results
… 1Ⅱ.
Summary of Consolidated Q1 FY2016 financial Results
Forecast of FY2016 Consolidated Net Sales and Operating Income
… 2Ⅲ. Order Intake and Net Sales by products / Sanwa Shutter
… 4July 29, 2016
Sanwa Holdings Corporation
Ⅰ. Overview of Consolidated Results
JPYm・USDk・EURk
FY2015 | FY2016 | ||||||||||||||||||||||
1Q | 2Q | Half Year | Full Year | 1Q | 2Q(F) | Half Year(F) | Full Year(F) | ||||||||||||||||
(＄119.23 €132.62) | profit ratio | Y/Y | Y/Y | (＄120.48 €133.83) | profit ratio | Y/Y | (＄121.03 €133.69) | profit ratio | Y/Y | (＄115.72 €127.99) | profit ratio | Y/Y | Y/Y | (＄110.00 €125.00) | profit ratio | Y/Y | (＄110.00 €125.00) | profit ratio | Y/Y | ||||
Net Sales 【assumed forex rate same as the previous year】 | 66,884 [64,166] | 8.2 [3.8] | 94,042 | 11.2 | 160,926 | 9.9 | 365,615 | 7.8 | 68,602 [69,820] | 2.6 [4.4] | 95,397 | 1.4 | 164,000 [170,534] | 1.9 [6.0] | 367,000 ［381,317］ | 0.4 [4.3] | |||||||
Sanwa Shutter | 26,928 | 2.3 | 48,999 | 7.4 | 75,928 | 5.5 | 180,157 | 6.3 | 27,084 | 0.6 | 52,015 | 6.2 | 79,100 | 4.2 | 187,000 | 3.8 | |||||||
Japanese Subsidiaries | 5,379 | -0.3 | 7,604 | 10.8 | 12,984 | 5.9 | 30,822 | 5.9 | 5,615 | 4.4 | 8,354 | 9.9 | 13,970 | 7.6 | 32,540 | 5.6 | |||||||
ODC (U.S.A.) | $203,763 24,294 | 2.5 19.2 | $222,470 27,057 | -2.1 16.9 | $426,234 51,352 | 0.1 18.0 | $909,573 110,085 | -1.7 11.8 | $212,862 24,632 | 4.5 1.4 | $242,137 25,417 | 8.8 -6.1 | $455,000 50,050 | 6.7 -2.5 | $975,000 107,250 | 7.2 -2.6 | |||||||
Novoferm (Europe) | € 88,277 11,707 | 12.1 6.0 | € 94,078 12,697 | 19.1 15.3 | € 182,355 24,404 | 15.6 10.6 | €398,902 53,329 | 12.0 6.7 | € 101,745 13,022 | 15.3 11.2 | € 98,254 11,977 | 4.4 -5.7 | € 200,000 25,000 | 9.7 2.4 | €410,000 51,250 | 2.8 -3.9 | |||||||
O | perating Income | -1,161 | -1.7 | －> [－] | 7,212 | 9.8 | 6,051 | 3.8 | -15.3 | 26,870 | 7.3 | 2.0 | -110 [-78] | -0.2 | +1,051 [+1,083] | 7,110 | -1.4 | 7,000 [7,226] | 4.3 | 15.7 [19.4] | 28,200 ［29,091］ | 7.7 | 4.9 [8.3] |
【assumed forex rate same as the previous year】 | [ 1,162] | ||||||||||||||||||||||
Sanwa Shutter | -245 | -0.9 | －> | 5,846 | 20.3 | 5,601 | 7.4 | 6.9 | 18,674 | 10.4 | 6.6 | -486 | -1.8 | -241 | 5,786 | -1.0 | 5,300 | 6.7 | -5.4 | 19,000 | 10.2 | 1.7 | |
Japanese Subsidiaries | -83 | -1.6 | －> | 475 | 16.2 | 392 | 3.0 | -12.5 | 1,758 | 5.7 | 4.5 | -98 | -1.7 | -14 | 463 | -2.5 | 365 | 2.6 | -6.9 | 1,970 | 6.1 | 12.0 | |
ODC (U.S.A.) | -$1,083 -129 | -0.5 | － > －> | $9,044 1,088 | -29.3 -16.7 | $7,960 959 | 1.9 | -48.6 -39.4 | $52,747 6,383 | 5.8 | -10.9 1.3 | $6,664 771 | 3.1 | +7,747 +900 | $11,335 1,208 | 25.3 11.1 | $18,000 1,980 | 4.0 | 126.1 106.4 | $69,000 7,590 | 7.1 | 30.8 18.9 | |
Novoferm (Europe) | -€2,477 -328 | -2.8 | － > －> | € 1,576 207 | 239.3 218.1 | -€901 -120 | -0.5 | － > －> | €12,561 1,679 | 3.1 | 17.2 11.6 | €1,853 237 | 1.8 | +4,331 +565 | € 2,346 287 | 48.9 38.4 | € 4,200 525 | 2.1 | ＋ > ＋> | €15,000 1,875 | 3.7 | 19.4 11.7 | |
C | urrent Income | -1,298 | -1.9 | －> [－] | 6,939 | 7.2 | 5,640 | 3.5 | -17.4 | 26,161 | 7.2 | 0.7 | -184 [-154] | -0.3 | +1,114 [+1,144] | 6,534 | -5.8 | 6,350 [6,543] | 3.9 | 12.6 [16.0] | 27,500 [28,329] | 7.5 | 5.1 [8.3] |
【assumed forex rate same as the previous year】 | [ 1,286] | ||||||||||||||||||||||
Sanwa Shutter | -193 | -0.7 | －> | 5,881 | 18.6 | 5,688 | 7.5 | 4.7 | 18,852 | 10.5 | 3.3 | -464 | -1.7 | -271 | 5,864 | -0.3 | 5,400 | 6.8 | -5.1 | 19,150 | 10.2 | 1.6 | |
Japanese Subsidiaries | -71 | -1.3 | －> | 476 | 13.7 | 405 | 3.1 | -14.5 | 1,803 | 5.9 | 3.7 | -89 | -1.6 | -17 | 474 | -0.6 | 385 | 2.8 | -5.0 | 2,010 | 6.2 | 11.4 | |
ODC (U.S.A.) | -$1,793 -213 | -0.9 | － > －> | $7,989 960 | -38.0 -27.0 | $6,196 746 | 1.5 | -59.2 -52.0 | $49,605 6,003 | 5.5 | -13.7 -1.9 | $6,696 774 | 3.1 | +8,489 +988 | $9,103 963 | 13.9 0.3 | $15,800 1,738 | 3.5 | 155.0 132.8 | $64,500 7,095 | 6.6 | 30.0 18.2 | |
Novoferm (Europe) | -€2,387 -316 | -2.7 | － > －> | €792 103 | 58.2 46.2 | -€1,595 -213 | -0.9 | － > －> | €11,053 1,477 | 2.8 | 5.8 0.8 | €1,465 187 | 1.4 | +3,852 +504 | € 1,634 199 | 106.4 93.9 | € 3,100 387 | 1.5 | ＋ > ＋> | €13,500 1,687 | 3.3 | 22.1 14.2 | |
Other Affiliates | -115 | ＋> | 23 | ＋> | -91 | ＋> | -176 | ＋> | -102 | +12 | -198 | －> | -301 | －> | 0 | ＋> | |||||||
Net Income attributable to owners of the parent 【assumed forex rate same as the previous year】 | -1,195 [ 1,188] | -1.8 | －> [－] | 4,421 | 35.0 | 3,226 | 2.0 | -1.8 | 14,627 | 4.0 | 13.8 | -490 [-473] | -0.7 | +704 [+721] | 3,590 | -0.2 | 3,100 [3,184] | 1.9 | -3.9 [-1.3] | 16,700 ［17,199］ | 4.6 | 14.2 [17.6] | |
Sanwa Shutter | -248 | -0.9 | －> | 4,034 | 30.1 | 3,786 | 5.0 | 10.8 | 12,808 | 7.1 | 9.1 | -335 | -1.2 | -87 | 3,915 | -2.9 | 3,580 | 4.5 | -5.5 | 12,840 | 6.9 | 0.2 | |
Japanese Subsidiaries | -98 | -1.8 | －> | 373 | 29.1 | 275 | 2.1 | 0.5 | 1,203 | 3.9 | 22.9 | -138 | -2.5 | -40 | 343 | -8.0 | 205 | 1.5 | -25.5 | 1,315 | 4.0 | 9.2 | |
ODC (U.S.A.) | -$1,324 -157 | -0.7 | － > －> | $5,057 607 | -37.4 -26.4 | $3,733 449 | 0.9 | -61.8 -55.0 | $30,857 3,734 | 3.4 | -14.9 -3.3 | $4,383 507 | 2.1 | +5,708 +665 | $4,116 427 | -18.6 -29.6 | $8,500 935 | 1.9 | 127.7 107.9 | $41,000 4,510 | 4.2 | 32.9 20.8 | |
Novoferm (Europe) | -€1,957 -259 | -2.2 | － > －> | € 228 28 | ＋ > ＋> | -€1,729 -231 | -0.9 | ＋ > ＋> | €5,961 796 | 1.5 | 57.9 50.4 | €314 40 | 0.3 | +2,271 +299 | -€914 -115 | － > －> | -€600 -75 | -0.3 | ＋ > ＋> | €5,400 675 | 1.3 | -9.4 -15.3 | |
Other Affiliates | -115 | ＋> | 23 | ＋> | -91 | ＋> | -176 | ＋> | -102 | +12 | -198 | －> | -301 | －> | 0 | ＋> | |||||||
1) The relevant financial periods for each entity are as follows:
Sanwa Shutter & Japanese subsidiaries:
ODC & Novoferm:
1Q First Half Full Year 2) Figures are round off. is for increase, is for decrease from the previous year.
Apr.1 to Jun.30 Apr.1 to Sep.30 Apr.1 to Mar.31 following year 3) Figure by entities are before consolidation adjustment and do not add up to total.
Jan.1 to Mar.31 Jan.1 to Jun.30 Jan.1 to Dec.31 4) Forex rate is term average.
- 1 -
5）Figures in FY2016 1Q indicates insrease rates for sales and increase/decrease amounts for incomes.
Ⅱ. Summary of Consolidated cumulative Q1 FY2016 Results
summary
■Net sales increased in all areas(Japan, US and Europe). Overhead Door(USA) and Novoferm(Europe) net sales have gotten
off to a good start but growth rates on Japanese-yen basis were stated downwards due to appreciation of yen.■Consolidated operating income showed great improvement thanks to favorable US & Europe businesses, both ODC and NF
turned into black, partially offset by decline in Japanese business due mainly to incurred anticipatory investment and increased SG&A costs.Net Sales
■Consolidated net sales increased by 2.6% or 1.7 billion yen vs. Q1 2015(if FY2015 currency rate applied, it would have
increased by 4.4% or 2.9 billion yen).Japan : Increased by 1.2% vs. Q1 2015. Sanwa Shutter increased by 0.6%.The products mainly used for factories and warehouses increased, whereas, the products mainly used for retail stores, schools, and medical facilities decreased.
By products, heavy-duty shutters increased by 5.9%, partitions increased by 7.8%, and lightweight shutters increased by 3.1%, but building & condominium doors decreased by 5.1%. Maintenance & Repair business increased by 6.1% but there was no effects of legal inspection of fire prevention equipment since it was introduced in June, 2016. Japanese subsidiaries total, except Sanwa Shutter, increased by 4.4%. Sanwa Tajima increased considerably by 35%, Showa Front decreased by 2.4%
due to weakening of retail store construction.
USA(ODC) ： Increased by 4.5% vs. Q1 2015 on a local currency basis. Door sales(Access Systems Division) increased by 6.9%. Garage door increased significantly by 15.1% and commercial door increased by 4.1%. Install & Service increased slightly by 0.5%,
due to strong performance at U.S sales center, partially offset by unfavorable Canadian business(CDS) affected by declining Canada dollar. Automatic doors and Truck doors decreased by 2.8% and 0.3%, respectively.
Europe(NF) ： Increased significantly by 15.3% vs. Q1 2015 on a local currency basis. By products, Hinge Door increased by 14.1%
with recovering from production trouble occurred in 2015. Garage Door increased by 12.0% driven mainly by strong sales in Germany and France. Industrial Door also increased by 7.4% driven by strong sales mainly used for distribution centers and favorable cross-selling initiatives with Alpha.
Operating Income
Current Income
■Consolidated operating income increased by 1.05 billion yen vs. Q1 2015 (if 2015 currency rate applied, it would have
increased by 1.08 billion vs. Q1 2015).Japan : Sanwa Shutter decreased by 0.24 billion yen. Gross profit increased by 0.16 billion but SG&A costs (mainly personnel cost) increased by 0.4 billion. But the result was within anticipated. Japanese subsidiaries total, except Sanwa Shutter, decreased slightly by 0.01 billion.
USA(ODC) : Increased by $7.7M vs. Q1 2015 on a local currency basis due to volume increase and steel price decrease.
Europe(NF) : Increased by 4.3M Euro vs. Q1 2015 on a local currency basis due mainly to sales volume increase and SG&A cost reduction efforts.
■Consolidated current income improved significantly by 1.11billion yen vs. Q1 2015.
Non-operating profit increased by 0.06 billion yen due mainly to improvement of profit of equity method affiliates, and financial revenue,
as well as currency exchange gain in US business.
Net Income attributable to owners
of the parent
■Profit attributable to owners of the parent increased by 0.70 billion yen vs. Q1 2015.
Extraordinary loss increased by 0.08 billion yen due to recorded the restructuring costs of Novoferm.
Forecast of FY2016 Consolidated Net Sales and Operating Incomesummary ■ The company maintains its forecast (both 1st half and full year) from those announced on May 13, 2016.
Net Sales
■It is expected that Japanese business will achieve its sales forecast and net sales for both US and EU business will be higher
than last year on a local currency basis.Japan : Expected to achieve its forecast since Sanwa Shutter's order backlog for commercial building products has been growing and sales team focusing on ensuring short-time projects (completed within FY2016)
USA(ODC) : Expected to achieve its forecast on a local currency basis driven mainly by great recovery of Garage Door sales and consistent
Commercial Door sales, partially offset by weakening Operator sales.
Europe(NF) : Hinge Door's order volume for large buildings and Garage Door in mainly Germany & France will continue to be favorable.
Industrial Door will exceed its forecast on a local currency basis due to favorable of Alpha and the effect of Norsud acquisition. The effects of Brexit is limited ,and is not expected to have a material impact .
Operating Income
■It is expected that Japanese business keep up with the forecast, and both US and EU business achieve increase of profit as
forecast.Japan : Maintains its forecast since Sanwa Shutter expects to increase sales volume and realize price adjustment effect after Q2 2016, covering the increase in installation costs and personnel costs (those are within expectation).
USA(ODC) : Maintains its forecast on a local currency basis since it expects to increase sales volume on core business such as Door, with favorable material cost impact.
Europe(NF) : Maintains its forecast driven by the favorable developments in each business and cost reduction by business restructuring efforts.
Sanwa Holdings Corporation published this content on 01 August 2016 and is solely responsible for the information contained herein.
Distributed by Public, unedited and unaltered, on 29 August 2016 04:16:05 UTC.
Original documenthttp://www.sanwa-hldgs.co.jp/english/20160801kessaneng.pdf
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