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Omron Closes Q3

TOKYO — OMRON Corporation (TOKYO:6645)(ADR:OMRNY) today reported consolidated performance for the third quarter of fiscal 2010, ending March 31, 2011.

Consolidated net sales for the nine months ended December 31, 2010 increased 21.8 percent compared with the same period of the previous fiscal year to JPY 451,311 million due to the implementation of measures including expansion into emerging markets and introduction of new products, although the impact of the strong yen remained significant. Operating income was JPY 37,179 million as a result of the success of the structural reforms and cost reductions the Omron Group has implemented, together with increased sales in core businesses. Income before income taxes was JPY 35,945 million, and net income attributable to shareholders was JPY 23,167 million. Note: All amounts are rounded to the nearest million yen.

1. Overview of Conditions

The economy moved toward recovery until the second quarter. Despite concerns about a possible downturn at the start of the third quarter, economic conditions were generally firm overall.

In the Japanese economy, although a weakening in exports due to the stronger yen was apparent, capital investment demand stemming from improved corporate earnings remained solid. As for overseas economies, China and Southeast Asia remained strong, with continued expansion driven by internal demand. The U.S. economy is gradually recovering, aided by the effects of government measures and other factors. In Europe, economic trends varied by country, with worsening financial conditions in some countries.

In markets related to the Omron Group, there were concerns that the strengthening of the yen and the reduced effect of government stimulus measures in the third quarter would lead to a decline in demand. However, demand for electronic components remained strong, primarily for household electrical appliances and automotive electronics. Capital investment demand was solid, primarily in the semiconductor, electronic components and automotive industries, reflecting rising interest in the environment and energy savings in developed countries, as well as expansion of demand in emerging markets.

The Omron Group's net sales for the nine months ended December 31, 2010 increased 21.8 percent compared with the same period of the previous fiscal year to JPY 451,311 million due to the implementation of measures including expansion into emerging markets and introduction of new products, although the impact of the strong yen remained significant. Operating income was JPY 37,179 million as a result of the success of the structural reforms and cost reductions the Omron Group has implemented, together with increased sales in core businesses. Income before income taxes was JPY 35,945 million, and net income attributable to shareholders was JPY 23,167 million. The average exchange rates for the nine months ended December 31, 2010 were USD 1 = JPY 86.9 and EUR 1 = JPY 113.5 (6.7 yen and 18.7 yen less than the same period of the previous fiscal year, respectively).

{complink 3964|Omron Corp.}

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