Both sales revenue and profits were below those for the six months ended September 30, 2019 ("FY20 1H"), because during FY21 1H, the business environment remained severe despite gradual easing of the effects of economic deterioration caused by the spread of COVID-19 infections.
In the Components Business, sales revenue particularly in the Electronic Devices Group decreased because production activities in automotive-related markets did not reach the level of FY20 1H despite an improving trend. In the Equipment and Systems Business, a decline in demand for equipment, such as printers and MFPs, and consumables in the Document Solutions Group, as well as a decline in sales of mobile phone handsets and environment and energy engineering business in the Communications Group were major factors behind lower sales revenue. As a result, sales revenue in FY21 1H decreased by 12.9% compared with FY20 1H.
Profit declined compared with FY20 1H due mainly to lower sales revenue. Operating profit decreased by 60.1%, profit before income taxes decreased by 43.4% and profit attributable to owners of the parent decreased by 42.4%, respectively, compared with FY20 1H.
[Released on October 29, 2020]
The forecast for FY21 has not been changed from the forecast announced in April 2020. Despite the impact of the COVID-19 epidemic, financial results in FY21 1H were within our projections made at the beginning of FY21, which were based on the assumption that the global economy would gradually recover from the three months ended September 30, 2020 onward. Further recovery in automotive-related markets and the document equipment market, etc. is expected from the three months ending December 31, 2020, although negative impact on demand for some products remains a concern because of the resurgence of trade friction between the U.S. and China. We aim to achieve our consolidated financial forecast for FY21 by continuing efforts to comprehensively reduce costs and further improve productivity.