Our consolidated financial results for the second quarter of fiscal 2018 (April 1–September 30, 2018) show decreases in both income and profit due to the effect of reduced production among customers, in spite of the exchange rate influence accompanying the yen’s depreciation. Specifically, it posts figures of 162.9 billion yen for net sales, 9.7 billion yen for operating income, 10.0 billion yen for ordinary income, and 6.0 billion yen for net income attributable to owners of parent.
In recent years, automakers have been striving to expand their application of ultra-high-tension materials and hot-stamped parts in order to achieve both higher strength and lower weight in their manufacture of vehicle bodies. Use of hot-stamped parts is already widespread mainly among automakers in Europe and the United States, but hot stamping is being adopted for more types of models and parts, year after year, by Japanese automakers as well. We have been working on the technological development of hot-stamped products ahead of other Japanese auto parts manufacturers. To take full advantage of the business opportunity presented by this trend, we are planning to install hot-stamping facilities on a global scale. We are steadily making preparations for placing such facilities into operation in 2019 at the plants of Dongfeng Unipres Hot Stamping Corporation (a joint venture established in Guangzhou, China); Unipres Mexicana, S.A. de C.V; and Unipres Kyushu Corporation. In addition, we have decided to install them in Unipres Alabama, Inc. and Unipres (UK) Limited, planning to commence operation in 2020. We are going to consider their installation at additional plants in step with the orders we receive for new vehicles.
As for the world economy, concerns including America’s trade policy of protectionism and the UK’s BREXIT are casting clouds over the future. The automobile industry is said to be undergoing “a major transformation that occurs only once every 100 years.” The keywords are “electrification,” “self-driving,” and “connectivity,” and these concepts are progressing in parallel through the cross-industry collaboration that extends beyond mere technological innovation, changing the industry’s structural landscape. Although the circumstance surrounding our company is becoming even more challenging, we will all strive as one Global Unipres and further deepen UPS Activities to enhance our profitability and competitiveness by trying to build up a robust and flexible corporate structure that enables to take advantage of each opportunity. We ask for your further support and guidance.
Established with the merger of Yamakawa Industrial Co., Ltd. and Yamato Kogyo Co., Ltd. in April 1998, Unipres Corporation celebrated the 20th anniversary of its founding in April of 2018. Over these 20 years, the environment surrounding the auto industry has undergone a variety of changes. Unipres has nevertheless achieved growth, by deploying management strategy that looks 10 or even 20 years into the future. For example, it perceived the offshore shift by automakers as a business opportunity and promptly augmented its setup for production in other countries ahead of rivals. We introduce the main developments from the merger to the present below.