OMRON Boosts Net Earnings 52.4% to JPY46.7 Billion

OMRON Corporation (TOKYO: 6645) today announced its consolidated operating results for the first nine months of fiscal 2017, ended December 31, 2018. Net sales for the term advanced 9.9% from a year earlier, to JPY624.9 billion, reflecting progress in the core Industrial Automation Business (“IAB”), as well as in the Electronic and Mechanical Components Business and the Healthcare Business. Gross profit rose 16.4%, to JPY260.8 billion, operating income climbed 40.5%, to JPY64.4 billion, and net income attributable to shareholders jumped 52.4%, to JPY46.7 billion. Details are available at: https://www.omron.com/about/ir/irlib/presen/

Net sales, gross profit, and operating income were all record highs for the first nine months, as was the gross profit margin, a key focus for management, which advanced 2.3 percentage points, to 41.7%. Revenues and earnings increased for the fourth consecutive quarter.

Global sales were up around 25% in IAB, which focuses on the automotive, digital, food and daily necessities, and social infrastructure fields. Sales in Greater China surged 34% on demand fueled by rapidly expanding digital industry investments in Greater China and Korea. Sales in this segment thus increased 21.7%, to JPY292.1 billion.

Management has maintained the upgraded full year forecast, announced with the first half results, expecting net sales to rise 7.0%, to JPY850.0 billion, and gross profit to gain 13.4%, to JPY353.5 billion. Operating income is also expected to rise 25.8%, to JPY85.0 billion, with net income attributable to shareholders increasing 28.3%, to JPY59.0 billion. In view of robust demand in IAB, management has lifted its sales forecast for IAB by JPY5.0 billion from the forecast announced at the first half results to JPY393.0 billion. At the same time, the sales forecast of Other Businesses has been revised downward by JPY5.0 billion to 52.0 billion due to the market slowdown in the backlight business and the PV inverter business.

Yoshihito Yamada, President and CEO, commented that, “Our performance demonstrated that we have made steady progress toward our goals for 2020 under VG 2.0, our medium-term management plan. We will continue changing to build new value as part of an ongoing companywide effort to grow toward and beyond 2020.” Details of VG 2.0 are available at: https://www.omron.com/vg2020/

 

Financial Highlights

(Billions of yen)

   

Third Quarter

Fiscal 2016

 

Third Quarter

Fiscal 2017

  Change

YoY

Net sales 568.7 624.9 9.9%
Gross profit

(Gross profit margin)

224.0

(39.4%)

260.8

(41.7%)

16.4%

(2.3 percentage points)

Operating income

(Operating income margin)

45.8

(8.1%)

64.4

(10.3%)

40.5%

(2.2 percentage points)

Net income attributable to
shareholders

30.6 46.7 52.4%
Yen to U.S. dollar rate

Yen to euro rate

106.9

118.7

111.7

127.9

4.8 yen

9.2 yen

 

Fiscal Year 2017 Forecast

 (Billions of yen)

    Fiscal 2016

Actual

  Fiscal 2017

Forecast*

  Change

YoY

Net sales 794.2 850.0 7.0%
Gross profit

(Gross profit margin)

311.8

(39.3%)

353.5

(41.6%)

13.4%

(2.3 percentage points)

Operating income

(Operating income margin)

67.6

(8.5%)

85.0

(10.0%)

25.8%

(1.5 percentage points)

Net income attributable to
shareholders

46.0 59.0 28.3%
Yen to U.S. dollar rate

Yen to euro rate

108.9

119.4

111.3

127.9

2.4 yen

8.5 yen

 

Fiscal Year 2017 Sales Forecast by Business Segment

 

 

(Billions of yen)

   

Fiscal 2017

Last Forecast
(1H)

  Fiscal 2017

Forecast*

  Change

YoY

Industrial Automation 388.0 393.0 +5.0

Electric and Mechanical
Components

99.5 99.5 ±0

Automotive Electronic
Components

129.5 129.5 ±0

Social Systems, Solutions
and Service

63.5 63.5 ±0
Healthcare 108.5 108.5 ±0
Other Businesses 57.0 52.0 -5.0
Elimination and Corporate 4.0 4.0 ±0
Total 850.0 850.0 ±0
 

About OMRON Corporation

OMRON Corporation is a global leader in the field of automation based on its core technology of "Sensing & Control + Think." OMRON's business fields cover a broad spectrum, ranging from industrial automation and electronic components to automotive electronic components, social infrastructure systems, healthcare, and environmental solutions. Established in 1933, OMRON has about 36,000 employees worldwide, working to provide products and services in 117 countries and regions. In the field of industrial automation, OMRON supports manufacturing innovation by providing advanced automation technologies and products, as well as through extensive customer support, in order to help create a better society. For more information, visit OMRON's website: http://www.omron.com/

*Yen to US dollar and euro rates for the 4th quarter are JPY110 and JPY128 respectively