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Ikuo Higashi, President
Honyaku Center Inc. |
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Business results for the second quarter of FY 2011
To begin, we would like to express our sincere gratitude to all shareholders and investors for your continued warm support and encouragement to the Honyaku Center Group.
We also would like to express our heartfelt sympathies to the many people affected by the Great East Japan Earthquake. We sincerely pray for the recovery of the affected areas.
During the second quarter of the fiscal year ending March 2012, the Japanese economy remained severe, due to concerns over power shortages caused by the Great East Japan Earthquake, which occurred just before the end of the previous fiscal year. However, it then began to pick up thanks to the further recovery in production activities as a result of an improvement in supply chains.
Under such economic circumstances, the Group posted net sales of 2,502 million yen in the second quarter under review, up 13.9% from the corresponding period of the previous fiscal year. Operating income was 150 million yen, up 42.1%, and ordinary income stood at 148 million yen, up 53.5%. Net income was 79 million yen, up 37.1%.
Revision of consolidated earnings forecast for FY 2011
The Great East Japan Earthquake caused unprecedented damage to all of Japan and disrupted its infrastructure. As a result, the Japanese economy, which had been recovering at a gradual pace toward the end of the previous fiscal year, took a sudden turn and its future direction became extremely difficult to forecast. Our 26th term (FY 2011) started amid the increasing uncertainty regarding the domestic economy. To cope with this situation, the Group closely watched the movement of client companies, and strove to collect information and meticulously meet their needs.
In April, we received requests from some clients in the industrial field for a delay in the timing of ordering. This made us worry that sales would be sluggish because of the direct effects of the earthquake. Fortunately, however, our business performance for the first six months was better than planned, thanks to continued and proactive sales activities toward client corporations. Consequently, on September 30, we revised our previous consolidated earnings forecast released at the time of announcing the business results on May 11, 2011. Now, we forecast that consolidated net sales for the end of the current fiscal year will be 5,300 million yen, up 11.4% from the previous fiscal year, with ordinary income at 350 million yen, up 29.5% and net income at 180 million yen, up 28.8%.
Outlook for FY 2011
Amid the ongoing reconstruction from the Great East Japan Earthquake, the economy is showing signs of recovery in Japan. However, its economic trends still remain uncertain given the yen's persistent appreciation caused by the financial crisis in Europe and the risk of further economic downturn overseas. In the industrial translation sector, trends are growing toward a shorter delivery period and higher quality through the introduction of IT tools and use of translation support tools. Further, the Group is increasingly receiving orders for comprehensive work including translation, that is, value-added translation service, unlike the conventional trend of contracting only translation.
The Group will strive to strengthen its earnings power and secure profits by utilizing HC TraTool, a translation support system developed to ensure stable-quality and efficient translation. In addition, we will steadily expand our market share, by quickly responding to changes in the business environment of industrial translation and customer needs, while leveraging our strengths as the foremost company of the industrial translation sector, such as our scale and organizational capabilities.
Furthermore, to nurture the further development of the industrial translation sector itself, we are striving to raise not only our own corporate value but also the status of translators and general awareness about the translation industry. By making these efforts every day, we aim to become the de facto standard in the industrial translation sector.
We sincerely hope that you have gained an understanding about the Group's businesses and corporate principles, and humbly ask for your continued support and encouragement going forward.
November 2011
Ikuo Higashi, President |
