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Ikuo Higashi, President
Honyaku Center Inc. |
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I hope that everything is going well with all of you. I also would like to express my sincere appreciation for your continued support and encouragement to the Honyaku Center Group.
As an industry leader, we provide support for corporate clients who intend to expand their businesses overseas. At the same time we are aiming to nurture the development of the translation industry by not only raising our own corporate value, but also the status of translators and general awareness about the translation industry itself. Through these efforts, we are aiming to become the de facto standard in the industrial translation sector.
During the first quarter of the fiscal year ending March 2011, the Japanese economy continued to be affected by factors such as the financial crisis in Europe, the high yen and deflation. This was despite the visible signs of improvement in corporate earnings brought about thanks to improved overseas economies and emergency economic measures.
Under such circumstances, the group posted net sales of 1,054 million yen in the first quarter under review, up 0.2% from the previous fiscal year. In terms of profits, we suceeded in reducing sales costs and sales administration costs. In addition, our subsidiaries in the U.S. contributed as well to overall profits. As a result, operating income was 45 million yen, up 81.4%, ordinary income came to 44 million yen, up 58.7% and net income stood at 26 million yen, up 69.4%.
Although the Japanese economy has been picking up steadily due to an improvement in corporate earnings and a gradual recovery in exports, the response of some sectors of the translation industry to such economic recovery was slow. Hence, the business environment of the industrial translation sector remains in a condition of uncertainty. However, our orders received continued to be steadily maintained in the first quarter under review, and thus we believe that demand for translation has not softened. While making the most of both the scale and organizational strengths and characteristics of our company, we will work on controlling increases in cost while placing the achievement of this financial period's forecast as our top priority.
At the 24th Ordinary General Meeting of Shareholders held on June 29, we decided to issue new shares to M3, Inc. and With us Corporation through third-party allocation. The payment procedures were completed on July 20. Partly because of the newly agreed capital and business alliance with M3, synergy effects are expected to be generated between Honyaku Center group and these allottees. We believe this will result in an increase in our corporate value over the mid- to long-term.
We sincerely hope that you have gained an understanding about our businesses and corporate principles, and we humbly ask for your continued support and encouragement going forward.
August 2010
Ikuo Higashi, President |
