Group Business Summary

Summary of the Group's business in the 209th fiscal year (ending in March 2017)

Textile Business

The weaving thread field saw its sales to main customers remain strong with the uniform field back on a recovery path due to continuing firm demand from public works.

The casual wear field had a problem with earnings with its exports affected by a strong yen in the first half of the term although its domestic sales performed well.

Overseas subsidiaries experienced a decline in sales due to foreign currency exchange losses in yen terms accompanying the appreciation of the yen. In terms of profits, whereas there were improvements in some countries in Southeast Asia, Brazil struggled mainly due to stagnation in its economy.

As a result, sales were 69,500 million yen (a year-on-year decrease of 13.6%) partly due to a withdrawal from unprofitable operations. Operating profit was 970 million yen (a year-on-year increase of 30.5%).

Chemical Product Business

In the automotive field, flexible polyurethane foams for export remained firm with other products including non-woven fabrics for filters performing well.

The functional film field saw products for stationery and others going strong. In addition, high-performance resin processed goods performed well for semi-conductor manufacturing.

In the housing building materials, sales of textile reinforcing materials, exterior goods and others were firm. As a result, sales were 58,400 million yen (a year-on-year increase of 2.3%). Operating profit was 2,140 million yen (a year-on-year surge of 207.8%.)

Advance Technology Business

In the electronics field, whereas sales of large-format color copying systems remained poor, content meters for semi-conductors, inspection machines for beverage containers and others sold well.

The engineering field had difficulty securing profits due to an increase in construction costs as the business of selling electricity commenced.

In the biomedical field, sales of nucleic acid separators for overseas were firm.

In the machine tool field, sales of horizontal boring milling machines, a key product line, were sluggish due to a slump in capital investment at home and abroad. As a result, sales were 19,100 million (a year-on-year decline of 9.9%). Operating profit was 470 million yen (a year-on-year drop of 35.3%).

Food & Services Business

In the food field, sales of products for the soup and confectionery markets were good with instant noodle ingredients selling well.

In the hotel field, revenue of the accommodation and product-sales departments remained firm.

As a result, sales were 10,200 million yen (a year-on-year increase of 3.3%). Operating profit was 1,050 million yen (a year-on-year increase of 18.8%).

In November 2016, the Group decided to conduct a large-scale renewal of Kurashiki Ivy Square, a hotel transformed from a plant in the founding years of the Group, with the aim of expanding the Food & Services Business.

Real Estate Business

As a result of putting focus on promoting rental operations, sales were 4,300 million yen (neither a year-on-year increase or decrease). Operating profit was 3,060 million yen (a year-on-year decrease of 1.5%).