Investing in Japan: AISIN SEIKI announced financial results in FY2019

-

AISIN SEIKI, the world largest manufacturer of automatic transmissions


AISIN SEIKI Co., Ltd. headquartered in Kariya, Aichi Prefecture, is a leading auto parts manufacturer with the world's top market share in automatic transmissions. 

 The company develops car parts such as transmissions and brakes, as well as car navigation systems and parking assist systems. The company also develops a cogeneration system for residential use. Although it is mainly affiliated with Toyota Mortar, its advanced products and technological development enable the company to expand its business with automakers around the world.


 On April 30, Aisin Seiki announced its consolidated financial results for the fiscal year ending March 2020. Net income was 24 billion yen, a 78% decrease from the previous fiscal year. Spreading new coronavirus infections amid weak demand for new cars in China and other countries caused plummeting demand for auto parts. 
AISIN SEIKI announced financial results in FY2019

 As for the January-March period of 2020, net income was loss of 22.6 billion yen. It was profit of 26.9 billion yen in the same period last year. For the entire fiscal year 2019, sales were down 6% to 3,784.5 billion yen, and operating income was down 73% to 56.1 billion yen. Looking at operating income by region, it fell into an operating deficit in China and fell by 60% in Japan. The spread of coronavirus infections has reduced operating income by about 30 billion yen overall.

Toyota Motor Group prepares for COVID-19

On April 30, other eight major companies within Toyota Motor Group including Denso Corp also announced declining sales for the fiscal year 2019. 

 All eight companies could not disclose earnings forecasts for the fiscal year ending March 31, 2021 because it was difficult to predict the time of convergence of the new coronavirus in each country and region making it difficult to foresee the business conditions. 

 To cope with those uncertainties, Toyota Group companies including Aisin Seiki, has sought a more solid credit line from banks in view of the prolonged impact of the outbreak. Aisin Seiki added 300 billion yen to secure 400 billion yen in total. The financial bases of each company are sound, but they do their utmost to secure the cash flow of themselves and their small and medium-sized parts suppliers.
AISIN SEIKI announced financial results in FY2019

Comments

Post a Comment

Popular posts from this blog

Food and Drinks: Kaiten-sushi serves fresh and high quality of seafood

-
Image
Conveyor belt sushi , also known as Kaiten-sushi is a semi-self-service type, inexpensive sushi restaurant where small plates bringing various types of sushi on them are continuously circulated on chain conveyors installed along the seats.  Fresh and well-made sushi can be enjoyed for relatively cheap prices there. Plates typically come with one or two sushi pieces each and customers pick up plates they like. Customers can also place orders through a touch screen at each table when sushi they like is not available on conveyor belts.  Those Sushi are usually served on plates with several colors showing their prices ranging from 100 yen to around 500 yen. Some restaurants set the same price for all plates. The lowest price for a plate is usually 100 yen. That is why Kaiten-sushi is often called "100 yen sushi" and very popular among Japanese. Customers are given their bills from a staff who counts plates when they finish eating. Kaiten-sushi has grown thanks to technologie...
Read more

Investing in Japan: Menicon, a leading Japanese contact lens manufacturer, aims overseas market expansion

-
Image
Menicon secured profit growth amid COVID-19 disruptions Menicon Co., Ltd. is a leading contact lens manufacturer in Japan founded in 1951, headquartered in Nagoya. It consistently develops, manufactures and sells contact lenses and related products in-house. To date, Menicon has developed various types of contact lenses such as hard lenses, soft lenses, disposables (disposable), lenses for astigmatism and bifocal lenses. It has the No. 1 market share for hard lenses and the No. 2 market for soft lenses in Japan.  As for the recent consolidated financial results, Menicon announced that net income for the fiscal year ended March 31, 2020 was 4 billion yen, up 14% from the previous year. While the sales and profits of most Japanese companies fell sharply due to the spread of new coronavirus infections, Menicon increased its sales by 4.5% from the previous year to 84.5 billion yen, a record high for the fifth consecutive year since listing of its stock. On the other hand, the earning...
Read more

Investing in Japan: Toyota shows its strength shrugging off pandemic damage and semiconductor shortage

-
Image
COVID-19 cases rise in Japan amid state of emergency, Tokyo Olympics and Paralympics to be downsized The Japanese government has decided to add three prefectures to its state of emergency as coronavirus cases continue to rise.   Prime Minister Yoshihide Suga said on May 14 that he decided to expand a COVID-19 state of emergency covering Tokyo and other areas to three more prefectures as infections continue to surge ahead of the Summer Olympics.  Starting on May 15, it will cover Hokkaido, Okayama and Hiroshima in an effort to curb infections and ease the strain on medical systems. The government will also designate three more prefectures as areas where intensive virus measures should be taken which is often called “Manbou”, acronym in Japanese for quasi-emergency to contain the virus.  Daily new cases have been on the rise nationwide in recent weeks reaching more than 6,000 for the fourth straight day as of May 14. The recent spike in new cases forces the organizers of ...
Read more