This document has been translated from the Japanese original for reference purposes only.
In the event of any discrepancy between this translated document and the Japanese original, the original shall prevail. The Company assumes no responsibility for this translation or for direct, indirect or any other forms of damages arising from the translation.
Financial Results for the Three Months Ended June 30, 2022
Company name: Tatsuta Electric Wire & Cable Co., Ltd.
Stock exchange listing: Tokyo Stock Exchange
URL: https://www.tatsuta.com
Representative: Hiroya Yamada, President and Representative Director
Contact: Masafumi Imai, Director, Senior Executive Officer, General Manager of Accounting and Finance Department
Scheduled date of filing Quarterly Report: August 5, 2022
Scheduled date of commencing dividend payments: -
Availability of supplementary briefing material on quarterly financial results: Available
Schedule of quarterly financial results briefing session: Not scheduled
(Amounts of less than one million yen are rounded down.)
1. Consolidated Financial Results for the Three Months Ended June 30, 2022 (From April 1, 2022 to June 30, 2022)
(% indicates changes from the previous corresponding period.)
(Note) Comprehensive income: Three months ended June 30, 2022: (18) million yen [(105.1)%]
Three months ended June 30, 2021: 361 million yen [(64.4)%]
Three months ended June 30, 2022 Three months ended June 30, 2021
(Reference) Equity: As of June 30, 2022: 47,595 million yen
As of March 31, 2022: 48,169 million yen
(Note) Revisions from the most recently announced dividends forecast: No
3. Consolidated Financial Results Forecast for the Fiscal Year Ending March 31, 2023 (From April 1, 2022 to March 31, 2023)
(% indicates changes from the previous corresponding period.)
(Note) Revisions from the most recently announced financial results forecast: Yes
(1) Changes in significant subsidiaries during the period under review (changes in specified subsidiaries resulting in changes in scope of consolidation): No
2) Total number of treasury shares at the end of the period:
3) Average number of shares during the period (cumulative quarterly period):
* Overview of the proper use of financial results forecast and other notes
The earnings forecasts and other forward-looking statements herein are based on information available to the Company and certain assumptions deemed reasonable as at the date of publication of this document and should not be interpreted as any kind of guarantee or promise by the Company to achieve such forecasts. In addition, actual results may differ significantly from these forecasts due to a wide range of factors.
The supplemental financial information is scheduled to be disclosed on the TDnet on that same day as well as on the Company's website.
Table of Contents of Reference Materials
Qualitative Information on Financial Results for the Quarterly Period Under Review...........................................
Overview of forward-looking information such as consolidated financial results forecasts .............................
Quarterly Consolidated Statements of Income and Quarterly Consolidated Statements of Comprehensive
1. Qualitative Information on Financial Results for the Quarterly Period Under Review
During the three months ended June 30, 2022, as the Japanese economy saw mitigation of the harsh situation owing to the impact of COVID-19, there were signs of recovery in areas including corporate earnings, capital investment, personal consumption, and housing construction. The world economy is also expected to continue improving as the impact of COVID-19 decreases. However, the outlook is uncertain due to the risk of the spread of new coronavirus variants, a rise in resource and raw material prices, semiconductor supply constraints, the Russia-Ukraine crisis, and the lingering effects of restraints on economic activity in China.
The average domestic quotation price for copper, the main raw material used for the Company's products, for the three months ended June 30, 2022 was on levels higher than for the same period of the previous fiscal year, but fell toward the end of the period under review.
In the meantime, demand for electric wires for infrastructure was on levels lower than for the same period of the previous fiscal year, while in the equipment wire and cable business, demand from some users continued recovering. Sales of smartphones, the main application of functional films, remained weak in terms of volumes due to a slowdown of the Chinese economy and the effects of lockdowns in the country. Demand for materials was affected by sluggish product sales, shortages in supplies of semiconductors and other components and materials, and other factors.
In this environment, net sales for the three months ended June 30, 2022 increased to 14,732 million yen (up 3.2% year on year), but profits decreased, with operating income of 327 million yen (down 49.4% year on year), ordinary income of 437 million yen (down 38.9% year on year), and income attributable to owners of parent of 323 million yen (down 38.6% year on year).
An overview of the Group's business performance by segment is as follows:
[Electric Wire and Cable Business]
Sales volumes of electric wires for infrastructure were lower than for the same period of the previous fiscal year (down 13.2% year on year) as customers continued conservative buying due to higher copper prices and competition intensified, fueled by selling price revisions implemented in response to rising raw material prices. However, owing to factors such as higher copper prices as well as a continued recovery in demand from some customers for equipment wire and cable, net sales for this segment increased to 9,926 million yen (up 3.9% year on year). Meanwhile, despite efforts to improve margins, such as selling price revisions, the Company posted operating loss of 166 million yen (as opposed to operating income of 191 million yen for the same period of the previous fiscal year) due to lower sales volumes, higher raw material prices, slow progress on selling price revisions, fluctuations in copper prices, and other factors.
Demand for functional films, the Company's flagship products, decreased (down 2.3% year on year) due to lower production and sales volumes for smartphones, the major application of functional films, lockdowns in China, and shortages in supplies of semiconductors and other components and materials, and as a result, net sales for this segment were 4,228 million yen (down 0.5% year on year). Despite cost reduction efforts, etc., operating income decreased to 642 million yen (down 1.0% year on year) due to lower sales and higher material prices.
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TATSUTA Electric Wire and Cable Co. Ltd. published this content on 19 August 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 19 August 2022 07:23:02 UTC.