FinancialKanematsu Corporation
Highlights of Consolidated Financial Results for the First Half of the Fiscal Year Ending March 2019: Japan
1 Nov 20181 pages~7 min full read
Kanematsu Corporation reported strong growth for the first half of the fiscal year ending March 2019, with revenue rising 6.6% to 357.5 billion yen and operating profit increasing 17.6% to 15.5 billion yen.
Profit attributable to owners of the parent grew by 18.5% to 8.1 billion yen, driven by robust performance across primary business segments.
Growth was primarily fueled by the Electronics & Devices segment, which saw solid demand in ICT solutions and mobile phone sales, alongside strong contributions from the Motor Vehicles & Aerospace and Foods & Grain segments.
The Steel, Materials & Plant segment achieved higher profitability despite a revenue decline, supported by the improved performance of the North American oilfield tubing business.
Financial stability improved as shareholders' equity rose to 122.7 billion yen, resulting in an equity ratio of 23.2% and a stable net debt-equity ratio of 0.5 times.
Operating cash flow reached 2.2 billion yen, while 1.4 billion yen was utilized for investing activities, primarily focused on the acquisition of property, plant, and equipment.
Kanematsu Corporation’s consolidated financial results for the first half of the fiscal year ending March 2019 demonstrate a period of robust growth, characterized by increases in both revenue and profitability. The company reported revenue of 357.5 billion yen, representing a 6.6% year-on-year increase, while operating profit rose by 17.6% to 15.5 billion yen. Profit attributable to owners of the parent grew by 18.5% to 8.1 billion yen, reflecting strong operational performance across its primary business segments.
The company’s growth was driven by significant contributions from the Motor Vehicles & Aerospace, Electronics & Devices, and Foods & Grain segments. Specifically, the Electronics & Devices segment benefited from solid demand in ICT solutions and synergies within the mobile phone sales business. The Foods & Grain segment maintained steady performance through strong meat and feedstuff sales, while the Steel, Materials & Plant segment saw an increase in profit despite a slight decline in revenue, bolstered by improved oilfield tubing business in North America.
Financial stability remained a priority during this period, with shareholders' equity increasing by 6.7 billion yen to 122.7 billion yen, largely due to higher retained earnings. The equity ratio improved to 23.2%, and the net debt-equity ratio remained stable at 0.5 times. Cash flow from operating activities reached 2.2 billion yen, while net cash used in investing activities was 1.4 billion yen, primarily directed toward the acquisition of property, plant, and equipment. These results, prepared in accordance with International Financial Reporting Standards (IFRS), underscore a positive trajectory for the company as it maintains a consistent dividend policy and continues to leverage its diversified industrial portfolio.
