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During FY24, the global economy remained solid, although growth slowed due to monetary policies in various countries and heightened geopolitical risks. With respect to our principal markets, while orders in the automotive-related market improved, the semiconductor-related markets and the information and communication-related markets did not recover due mainly to inventory adjustments, etc.
Sales revenue for FY24 decreased by 1.0%, as compared with the year ended March 31, 2023 ("FY23"), due mainly to the impact of a decline in orders for our principal products in the Core Components Business and Electronic Components Business, which more than offset higher sales in the Solutions Business.
Profits decreased due mainly to lower utilization ratio of production facilities caused by a decrease in orders while we continue to make capital investment aggressively for future production expansion, as well as increase in labor and other costs. As a result, operating profit decreased by 27.7%, profit before income taxes decreased by 22.7%, and profit attributable to owners of the parent decreased by 21.0% respectively, as compared with FY23.
[Released on April 26, 2024]
During FY25, we expect that inventory adjustments will continue for a while in the semiconductor-related markets and the information and communication-related markets, which are our principle markets, although we anticipate that the situation will improve from the second half of FY25.
In the Core Components Business and the Electronic Components Business, we will expand our business by continuing aggressive investments to expand production capacity, particularly for components for the semiconductor-related markets and the information and communication-related markets. In the Solutions Business, we will aggressively develop new products, services, and businesses.
In addition to the above, we will aim to improve profitability by continuing structural reforms of low-profit or low-growth businesses.
