Our sales forecast at the beginning of the fiscal year was ￥375 billion, up 6% year on year at the same exchange rate. In the current fiscal year, we are making progress at about 20-21%, even excluding the effects of foreign exchange rate fluctuations, due to the resolution of procurement difficulties. This is a high level, as the 1Q progress rate over the past 10 years has been about 19%. Operating profit and profit also showed a high progress rate.
The annual order forecast is ￥360 billion, down 6% year on year at the same exchange rate. The order volume has recently entered a negative phase. The 1Q result was down 22%, as we had assumed the consolidated result would decrease by about 20% due to the strong performance in the same period of the previous fiscal year.
Q Is there any positive indication about operating profit when you analyze the change?
Gross profit has already improved as of 1Q, and is expected to be further boosted by our efforts to revise sales prices that we have made since July last year, which will be reflected in future operating results. In addition, gross profit is expected to improve on the whole, taking into account the fact that the laser strategy being pursued under the new president is likely to lead to further reductions in material costs.
Q What is the proper inventory turnover period? Also, to what extent can it be shortened in the future?
Our company's proper inventory turnover period in months should be shorter than about 3.5 to 4 months, but the inventory turnover period for 1Q is considerably longer. Currently, supply constraints are starting to be removed rapidly, and inventories are piling up as products are being completed ahead of schedule. Therefore, we are going to slightly reduce global production in 3Q and 4Q for inventory control.
Q Amada has proposed efficient plant operation with automation products and software. Please tell us the status of your efforts and the results.
Since February, we have been introducing to customers LIVLOTS, an environmentally friendly automation machine and plant visualization software equipped with the new AMNC 4ie control system. At MF-Tokyo held in July, we exhibited AMTES, a robot that automatically transfers materials between processes. In the face of soaring labor costs, labor-saving and automation is a hot topic for customers, and they have been showing a positive response to our products. We have already received many orders for the new products we announced in February. We have also received many inquiries about LIVLOTS, which is a key product in proposing efficient whole plant operation.
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Amada Co. Ltd. published this content on 22 August 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 22 August 2023 08:31:04 UTC.
Amada Holdings Co. Ltd. specializes in manufacturing, renting and marketing processing machines. The group also provides maintenance and repair services. Net sales break down by family of products as follows:
- metallurgy machines (80.3): primarily laser and welding machines, cutting and degreasing machines, bending and pressing machines;
- machine tools (19.3%): sawing machine, grinders, etc.;
- other (0.4%).
Net sales are distributed geographically as follows: Japan (45.5%), China (4.1%), Asia (10.1%), Europe (18.7%) and North America (21.6%).
AMADA HOLDINGS CO. LTD. 
