I am pleased to report our results for fiscal 2017, ended March 31, 2018.
During the consolidated fiscal year under review, the domestic market and the U.S. and European markets remained solid and the Chinese market continued to perform well.
In this environment, TSUGAMI Corporation (the “Company”) and its affiliates (the “Group”) focused its efforts on expanding sales in the automotive component sector as well as in other sectors that had been covered by the Group. As a result, consolidated net sales for the fiscal year under review increased 40.3% year on year, to 57,576 million yen. Consolidated net sales in Japan increased 23.0% year on year, to 12,670 million yen. Consolidated exports increased 46.1% year on year, to 44,905 million yen. The export ratio increased 3.1% from 74.9% for the previous fiscal year, to 78.0%
A breakdown of consolidated net sales by machinery category shows that sales of mainstay automatic lathes increased 40.1% year on year, to 47,949 million yen, sales of grinding machines rose 26.7%, to 4,221 million yen, sales of machining centers declined 46.1%, to 269 million yen, and sales of rolling machines and other specialized machines increased 76.1%, to 4,795 million yen.
Consolidated operating income jumped 125.1% year on year, to 6,942 million yen. Consolidated ordinary income soared 128.5% year on year, to 6,510 million yen, and net income attributable to owners of the parent rose 58.5% year on year, to 4,171 million yen.
For the consolidated fiscal year ended March 31, 2018, the Company has decided to pay annual dividends of 18 yen per share, including interim dividends of 9 yen per share and year-end dividends of 9 yen per share.
For the consolidated fiscal year ending March 31, 2019, the Company plans to pay annual dividends of 18 yen per share, including interim dividends of 9 yen per share and year-end dividends of 9 yen per share.
While continuing to work on expanding sales, improving production efficiency and reducing costs, the Group seeks to offer new products that fully meet customer requirements and enhance the services it provides. Through these efforts, it will consistently aim to raise customer satisfaction and work hard to maintain management structures trusted by customers.
We respectfully ask for the continued support and encouragement of our shareholders.
Takao Nishijima Chairman and CEO