To Our Shareholders
 |
Thank you very much for your constant warm support. The following are a few words of greeting on the occasion of this report on the results for the company’s 18th term of business. If we look back over the economic environment during the fiscal year ended December 2009, we can see that the curtain lifted on the kind of global economic downturn said to happen once in a hundred years and this serious economic slump continued throughout the first half of the fiscal year. After we moved into the second half, however, the economy moved gradually towards recovery, centered on the newly-emerging countries such as China, and there were also the effects of the economic stimulus measures put in place by various countries. In such an environment, production adjustment on a scale not previously seen continued throughout the first half in the electrical and electronics-related industries, and automobile-related industries that are the main areas of business of the company, and this had a great impact on the company’s results. However, we made efforts of cost reductions including the contraction of facility investment and inventories etc., to ensure profitability in our final consolidated results. In the second half, the return of demand was marked due to economic recovery once inventory adjustment came full circle in such industries. The situation in regard to orders received by the company also recovered steadily and both net sales and profits recovered to levels in excess of the same period of the previous year in the fourth quarter. As a result, we were able to deliver results above initial forecasts for the second half. Although there are a number of worrying factors in some areas such as Europe, it is thought that overall, the underlying trend towards slow economic recovery will continue in the global economy during the fiscal year ending December 2010. In addition to existing business, the company will strengthen business operations in new areas that it has started working on in recent years such as ecology and energy-saving. In addition, as a sense of uncertainty remains in the economic environment even now, we intend to remain vigilant and continue efficient management in regard to inventory contraction and cost reductions, etc. We request the continued support of all of shareholders. March 2010 Chairman & CEO |