FinancialKanematsu Corporation
Highlights of Consolidated Financial Results: First Half of the Fiscal Year Ending March 2018
1 Nov 20171 pages~7 min full read
Kanematsu Corporation reported a 67.8% year-on-year increase in profit attributable to owners of the parent, reaching 6.8 billion yen for the first half of the fiscal year ending March 2018.
Operating profit grew significantly by 39.5% to 13.1 billion yen, while total revenue rose 3.0% to 335.2 billion yen.
The company's financial position strengthened as shareholders' equity increased by 8.8 billion yen to 109.1 billion yen, improving the equity ratio to 22.4%.
Net interest-bearing debt was reduced by 1.2 billion yen, resulting in a net debt-equity ratio of 0.5 times.
The Electronics & Devices segment drove gross profit growth through strong demand for ICT solutions and expanded semiconductor equipment sales in China.
The Steel, Materials & Plant segment acted as the primary driver for overall revenue growth during the period.
The Motor Vehicles & Aerospace segment underperformed, experiencing declines in both revenue and profit due to sluggish conditions in the aerospace sector.
Kanematsu Corporation’s consolidated financial results for the first half of the fiscal year ending March 2018 demonstrate sustained growth and improved profitability. The company reported revenue of 335.2 billion yen, representing a 3.0% year-on-year increase, while operating profit rose significantly by 39.5% to 13.1 billion yen. Profit attributable to owners of the parent reached 6.8 billion yen, a 67.8% increase compared to the same period in the previous fiscal year. These results reflect the company’s ongoing operational success and effective management of its diverse business segments.
The financial position of the company strengthened during this period, with shareholders' equity increasing by 8.8 billion yen to 109.1 billion yen, driven primarily by higher retained earnings. This growth improved the equity ratio to 22.4%, up 1.5 percentage points from the previous fiscal year-end. Simultaneously, the company reduced its net interest-bearing debt by 1.2 billion yen, resulting in a more favorable net debt-equity ratio of 0.5 times. Cash flow from operating activities provided 3.2 billion yen, supporting the company's capital allocation and dividend plans.
Performance across business segments was largely positive. The Steel, Materials & Plant segment served as a primary driver for revenue growth, while the Electronics & Devices and Foods & Grain segments contributed to the increase in gross profit. Specifically, the Electronics & Devices segment benefited from firm demand in ICT solutions and mobile business synergies, alongside expanded semiconductor equipment sales in China. Conversely, the Motor Vehicles & Aerospace segment experienced a decline in both revenue and profit, largely due to sluggish performance in the aerospace sector. These results are reported under International Financial Reporting Standards (IFRS) and reflect the company's strategic focus on maintaining stable, diversified operations.
