I am pleased to report our results for the first half of fiscal 2012, ending March 31, 2013.
During the period, there were signs of a moderate recovery in the Japanese economy, aided by reconstruction demand after the Great East Japan Earthquake and eco-car tax breaks. However, uncertainty gradually increased given the aggravated European debt crisis and slowdowns in China and other emerging economies.
The machine tool industry continued to face a challenging situation, reflecting the effects of the prolonged strength of the yen, sluggish growth in domestic demand, and a slowing Chinese economy.
In this environment, net sales and income rose sharply at Tsugami Corporation (the gCompanyh) and its affiliates (thegGrouph), attributable to reconstruction demand after the Thai flooding and the full-scale effect of the Groupf s entry into the smartphone market.
Consolidated net sales for the first half of the fiscal year under review came to 34,409 million yen, increasing 106.5% year on year.
Consolidated operating income increased 303.4% year on year, to 5,636 million yen. Consolidated ordinary income rose 308.0% year on year, to 4,982 million yen, and consolidated net income increased 259.0% year on year, to 3,136 million yen.
The Company decided to pay an interim dividend of 6 yen per share according to its initial plan and plans to pay a year-end dividend of 6 yen per share (for an annual dividend of 12 yen per share) in the fiscal year ending March 31, 2013.
The Group remains committed to consistently enhancing its performance through higher sales, improved production efficiency and cost cutting, and offering new products that fully meet customer requirements, while enriching the services it provides. Aiming to improve customer satisfaction, we will devote every effort to providing reliable products that our customers need.
We respectfully ask for the continued support and encouragement of our shareholders.
Takao Nishijima Chairman and CEO